CU Times - By Michelle A. Samaad - March 16, 2012
According to a NAFCU survey, the member business lending cap is having an impact on loan approval, loan participation activity and hiring.
With the past 12 months, 10.3% of participants responding to NAFCU’s March Economic & CU Issues Monitor said they had to turn down loans due to the 12.25% of assets MBL cap restriction.
Nearly 14% said they had to turn to a loan participation in order to stay under the cap, NAFCU reported.
The lending limit has also discouraged hiring in a direct way with 3.6% of respondents saying they were prevented from hiring staff dedicated to business lending in the past 12 months due to the cap.