PHILADELPHIA, PA, January 07, 2013 /24-7PressRelease/
-- An article shared by Hispanic Business reports credit unions are lobbying Congress to raise the limit placed on the dollar amounts they can loan to small businesses. Their primary argument is job creation would be a natural outcome of business growth. Yet many companies cannot expand without financing. The article caught the attention of the business minds behind Lendio
, a company committed to helping small business owners identify options for financing.
The article reports credit unions are allowed to lend businesses what amounts to 12.25 percent of assets. The credit unions are putting pressure on the federal government to increase that percentage to 27.5 percent of assets.
"Any effort to make capital more available to Main Street businesses is a positive step," said small business lending expert and Lendio.com CEO Brock Blake. "There is a direct correlation to the number of jobs small business owners create and the availability of capital to expand. We regularly ask our small business customers why they are seeking financing, and job creation is always at the top of the list. I am convinced if we want to take job creation seriously, the first step is to make capital more available to the job creation machine that is small business."
Those in favor of the legislation point to job creation, which in turn would improve the economy. They are also quick to point out this solution presents no burden to taxpayers.
Opponents in the banking industry are concerned about the ability of credit unions to lend additional dollar amounts to small businesses will ultimately reduce the amount of revenue collected by the government. Because credit unions operate as non-profit organizations, they do not pay income tax like other corporations.
Further fueling the argument of the banks is that credit unions, which have been small organizations through much of history, have grown into large lenders in recent years. Bankers posit the tax exemptions enjoyed by credit unions date back to the Great Depression and as such, are outdated.
It remains to be seen if lawmakers will decide the benefits of potential job creation outweigh the risks of loss of revenue.
utilizes a web-based proprietary matching technology designed to help small business owners comparison shop among the best loans in the marketplace. The company was founded with the goal to simplify the business loan process by matching the unique needs of business with the lenders eager to provide financing. Small business owners benefit from a network of thousands of products from banks, credit unions and other sources. The people at Lendio believe small businesses are at the heart of American culture, and they strive to continue this entrepreneurial spirit by easing the financing process.