Loans to Firms with 20 or Fewer Employers Excluded from Cap

Rep. Kurt Schrader has introduced "Restore Main Street's Credit Act of 2012" (H.R. 4293).

While the text of the bill has not been published, the bill proposes to exempt brick-and-mortar businesses with 20 or fewer full-time employees from having their loans count against the aggregate business lending cap placed on credit unions.

According to the Census Bureau, there are roughly 5.2 million firms with fewer than 20 employees in the United States as of 2009. In addition, there are over 21 million businesses without any employees.

This would mean a huge expansion in the amount of business loans that credit unions could grant, as these loans would not count against the cap. It would also significantly increase the risk to the National Credit Union Share Insurance Fund.