Payday loans online same day Indiana

Wilson did, from credit union call reports and is something that the regulators track very closely. If there is a loan that is on there for more than 12 months, I can assure you there is a reason for that. And if I might also, just while I have the microphone, comment on Subchapter S status. When credit unions distribute their earn- ings to their members in the form of dividends, their members, who are the owners of the credit union, pay taxes on those dividends. A tax on a credit union is nothing more than a tax on a credit union member. That does presume that the credit union is paying the dividends to the members. I was a C corporation before we were allowed to take that election. With the election come many restrictions, and we chose to operate within online loans Nebraska those confines. However, whether or not the Subchapter S makes a dividend distribution to its shareholders, the tax must be paid, period. So even if the holding company or the bank does not make that distribution Senator Shelby. Whether or not the shareholders re- ceive a dividend check from a Subchapter S bank, the shareholders pay the tax every quarter.

I want to thank the witnesses for this testi- mony on this issue. Thanks again to my colleagues and our panelists for being here today. Under the Federal Credit Union Act, credit unions are limited in the amount of business lending they are permitted to engage in.

The aggregate amount of member business loans made by a credit union is restricted to the lesser of 1. The member business lending cap was put in place in 1998 with the passage by Con- gress of the Credit Union Membership Access Act.

Since that time, the credit union industry has advocated for a removal of, or in- crease in, the business lending cap. Senator Mark Udall has introduced legislation that would raise the cap to 27. There is a wide range of views on this matter, especially as Congress considers proposals to speed the economic recovery. I think that it is important that we take the time to examine this issue here in Committee, and provide the opportunity for all sides to fully express their views on the subject. Chairman, historically, credit unions have focused on meeting the savings and credit needs of their members, especially people loans for unemployed Wisconsin of modest means. In recognition of this unique role, credit unions, unlike banks, have been teix-exempt. Today, the Committee will examine whether credit unions should be allowed to lend to businesses. This is not the first time the issue of business lending New Mexico cash loans by credit unions has come before this Committee. In 1998, this Committee passed, and Congress eventually enacted, legislation that placed significant restrictions on business lending by federally insured credit unions. At that time, the number of business loans made by credit unions was quite small. In fact, a report of this Committee that accompanied that legislation acknowl- edged that consumer loans made up nearly 99 percent of all credit union lending. Nevertheless, Congress limited business lending in order to prevent excessive risk-taking by credit unions. A report by the National Credit Union Administration had found that business lending caused half of payday loans online same day Indiana payday loans online same day Indiana the losses to the National Credit Union Share Insurance Fund in the 2 prior years. Additionally, in 1991 another report found that failing credit unions had made more business loans than other credit unions. Now, the ongoing credit crisis has prompted some to propose increasing the busi- ness lending limit. The credit crunch is a problem of concern to us all. As we examine this issue, however, we should first ask why credit is so hard to obtain. In particular, how has the Dodd-Frank Act affected credit availability? Alternatively, is the unprecedented Federal deficit crowding out private sector lending?

If we want to address the problem of credit availability to small businesses, a more comprehensive approach may be appropriate.

In addition, we should ask how changing business lending limits would affect the safety and soundness of credit unions. Even payday loans online same day Indiana with the current limitations on business lending, we continue to see credit union failures. Recently, the NCUA announced the 13th closure or conservatorship of a credit union this year. Over the last 2 years, 65 credit unions have failed. I hope to learn today whether business lending was a contributing factor in any of these failures. Changing the business lending limitations can alter the competitive landscape not only between banks and credit unions, but also among credit unions. Although they are not here today, we will need to hear from the bank regulators so that we can fully understand the effect such a change would have on the entire industry. Ultimately, healthy and strong credit unions are good for our economy and con- sumers. I want to thank you for holding this important hearing, on an issue I have cared deeply about for some time now: lifting the artificial re- straints we currently place on the ability of credit unions to help small businesses access much-needed credit.

As we heard in testimony from Chairman Matz and Mr. Cheney today, credit unions have been engaged in member business lending since their creation. In the past two Congresses I have introduced bills that would raise or eliminate this cap.

Last payday loans online same day Indiana Congress, my good friend from Colorado, Senator Mark Udall, took up the cause with a bill to raise the cap to 27. He has reintroduced his bill this Congress, with bipartisan support and a total of 19 cosponsors, including Sen- ators Reed and Brown on the Banking Committee. I want to say a few words about the bill and encourage all of my colleagues to support this commonsense way to immediately increase the amount of credit avail- able to small businesses — at no cost to the taxpayer.

We just came through the worst credit crunch any of us have ever seen, and ac- cess to credit is still a significant issue for small businesses in NY and all over the country. Even through the downturn, credit unions have continued to increase their business lending, but they are limited in their ability to do more. I strongly supported the creation of that Small Business Lending Fund, but Senator Udall and I and others fought to include his legislation for credit unions in that bill. To qualify, credit unions must be well capitalized, demonstrate sound under- writing and servicing based on historical performance, have strong management and policies to manage increased lending, and be approved by their payday loans online same day Indiana regulator for the higher cap. This means that only credit unions with significant experience lending to small businesses will have their cap raised, and it is targeted at those credit unions most likely to expand their lending because they are at or near the existing cap. And it does all that at NO COST to the Federal Government.