Sen.Mark Udall (D-Colo.), primary sponsor of S.2231, which wouldincrease the member business lending cap to 27.5% of assets,received loud cheers as he spoke in favor of the legislation toabout 500 gathered in Washington Nov. 27 to hike the hill in favorof the bill.

Udall told the credit union executives, small business ownersand members of Congress squeezed into the Kennedy Caucus Room atthe Senate Russell Office Building that banker arguments opposingthe bill are “flat-out wrong.” And he added that the MBL cap is adrain on the economy because “we know small businesses aren’t ableto generate the loans they need from the banking sector.”

Rep. Ed Royce (R-Calif.), who is the primary co-sponsor of H.R.1418, the House companion bill for member business lending, alsotook the podium to hearty applause and cheers. He told the crowdthe bill isn’t about banks versus credit unions or Democrats versusRepublicans but, rather, an opportunity to boost the economywithout having to borrow money from overseas.

Rep.Suzanne Bonamici (D-Ore.), Rep. John Larson (D-Conn.), Rep.Gerald Connolly (D-Va.), Rep.Brad Sherman (D-Calif.), Rep. Paul Tonko (D-N.Y.) and Rep.Steve Stivers (R-Ohio) also addressed the group. A surprise guestwas Rep. Spencer Bachus (R-Ala.), chairman of the House FinancialServices Committee, who didn’t speak but was given rock startreatment by those wanting to shake the hand of the powerfulcongressman. Rep. Jeb Hensarling (R-Texas) was selected by GOP leadershipWednesday to serve as the 2013 chairman, succeeding Bachus, who hasserved the maximum six-year term as either chairman or rankingminority member.

Several business owners who had been denied loans by banks werealso in force at the event, invited by the credit unions thatextended them much needed credit.

Roger Moore, a small business owner from Knoxville, Tenn., ownsa commercial real estate management and sales firm. After two banksasked him to move his business elsewhere in 2009, despite no lateor missed loan payments, he joined the $1.4 billion ORNLFCU of OakRidge, Tenn., where he was able to secure an SBA loan.

“My banker at Regents Bank called and asked to meet with meabout my line of credit,” he said. “I had heard about people havingtheir lines of credit pulled, but I was still surprised when heasked me to move my accounts elsewhere.”

Moore said that same year FSG Bank, where he had financed ashopping center purchase the year before, gave him 90 days to finda new home for the loan.

It wasn’t an easy road to funding at the credit union,either.

“I didn’t know anything about lending caps back then, but theysaid no because my loan would exceed their cap,” he said. “But,they did say they’d help me with an SBA loan, so I went withthem.”

That shopping center was later redeveloped, and Moore said hiscompany moved its executive offices with 30 employees to theproperty last month.

“When the credit union called, I didn’t know anything about thisbill, but I’m glad they asked because I’m the poster child,” hesaid.

Clay Kearley, vice president of member business services atORNLFCU, said his credit union is $30 million shy of its MBL cap.However, Kearley said his push for a legislation cap increase isn’tabout fighting for today’s loans. It’s a fight for the futureprosperity of the country.

Phil Dangel, owner of the Shrimp Dock in Knoxville, Tenn., alsoreceived an SBA loan through ORNLFCU. Dangel’s fresh fish marketwas denied loans by eight banks before he found the credit unionand used the loan to add a third location and buy out his partner.Dangel said his fish market business, which also serve overstuffedshrimp sandwiches to customers during the day, “isn’t breaking anyrecords, but business is good and we’re growing.”

Philip Maguire, owner of the Maguire Family of Dealerships inIthaca, N.Y., said bankers were running away from auto dealers whenthe recession hit, particularly as auto makers asked for bailoutsfrom the federal government. Thanks to credit from the $830 millionCFCU Community CU of Ithaca, N.Y., and an indirect lendingrelationship with the credit union, Maguire said he has grown hisdealerships from 30 employees in 2008 to more than 400 today.

“Not only have they provided me with personal and commercialloans, I’ve seen [CFCU] supply car loans all day long to people whowere turned down by bankers,” he said. That availability of credithas enabled low-income residents of Ithaca to obtain reliabletransportation needed to get and keep jobs, which has helped boostthe local economy and tax base, he said.

Maguire said he’s impressed by how the credit union invests inthe community, not only helping consumers but also supporting otherlocal businesses that purchase vehicles from his dealerships.

William Crane, senior vice president at CFCU, said the60,000-member institution is at more than 80% of its memberbusiness lending capacity.

“In about 12 to 18 months, we’ll have to start turning businessaway unless this bill passes,” he said.