Low-income credit unions currently have access to supplemental capital and are operating as nonprofit financial cooperatives. The Capital Access for Small Business and Jobs Act is a regulatory reform bill that poses no direct threat to any other segment of the financial services industry.
Expanded capital authority will enhance credit unionsí ability to serve their members, promote safety and soundness of the credit union system and benefit the broader economic recovery by facilitating job growth.
I am committed to finding solutions to stimulate an economic recovery, create jobs and help grow the American economy.
Passage of the Capital Access for Small Business and Jobs Act is a simple action that can be taken immediately.
Allowing supplemental capital makes sense because, again, it doesnít cost the federal government a single dollar, yet it helps credit unions make credit available to consumers and small business.
In order for credit unions to do their part to get our economy growing again, they need access to alternative sources of capital beyond their retained earnings. Thatís why this bill enjoys bipartisan support in Congress and from credit union regulators.
Rep. Brad Sherman (D-Calif.) is a member of the Financial Services Committee.