There's a first time for everything. Just last week, a creditunion representative was called on to testify at a hearingregarding a bill for community banks-sort of. It wasn't terriblycontroversial, but it was a start.

The House Financial Services Committee held a hearing to reviewinitiatives to promote small business lending and job growth. CUNAPresident/CEO Dan Mica testified regarding legislation to enact theSmall Business Loan Fund, a fund for which credit unions do notqualify. The appearance was a testament to the sway a former memberof Congress, particularly one soon leaving his current position,carries.

The bill is intended to spur community banks into lending againto small businesses. “Credit unions are not eligible to participatein the SBLF; and, quite frankly, credit unions do no seek to beeligible for this fund,” Mica stated in his written testimony. Tothe contrary, credit unions want to create jobs and lend withouttaxing the American public. It's shrewd positioning and a statementno elected official heading home this fall to unemployedconstituents can argue against.

Mica noted the legislation that has been introduced in the Houseand the Senate to increase credit unions' member business lendingcap. He also highlighted a Treasury proposal soon to be deliveredto lawmakers. Soon was the only timeline provided.

Committee Chairman Barney Frank stated that his committee wouldhold a hearing on the matter. No time frame was offered.

Credit unions and their representatives must quit acceptingempty promises-really, what weight does a hearing carry or aproposal coming soon-and lean harder on policymakers totake action instead of their own sweet time. Credit unions havebeen working on expanded business lending authorities for more thanhalf a decade. How much more patient can credit unions be?

Callahan & Associates Industry Analyst Elliott Kashnerrecently wrote a guestblog entry for Credit Union Times' Credit Union Exchange regarding the messagingin this particular battle between the credit unions and the banks,noting an ad by the California league as a good example on thecredit union side. He also highlighted: “There also is a powerfulnarrative that is the antithesis of the credit union story. Thisnarrative is not powerful because of the quality of the arguments,but because of the organization, efficiency and efficacy of thestorytellers. The American Bankers Association has launched acampaign against lifting the MBL cap. The ABA provides ane-mail template for bank executives containing recommended text forexecutives' to e-mail to their representatives…. The less youparticipate in the telling of your story, the more others dictateyour story to you.”

Mica's testimony at the hearing was a bit feistier than thecredit union lobby typically tends to be. As he stated, “The onlygroup that opposes [lifting the cap] is the group that's about toget $30 billion,” referring to the SBLF. He might have added, “oftaxpayer funds.”

This is precisely the direction credit union legislative effortsshould take. Of course at times you know you're fighting a losingbattle, but I don't think business lending is. If credit unionsdon't get this done during the financial services crisis, typicallythe only time Congress acts on anything, they never will. In fact,a national advocacy campaign targeting the voters-credit unionmembers and nonmembers alike-is in order. As a pilot program,target a handful of lawmakers that 1) are borderline but unlikelyto return to Congress after the November elections and 2) haveopposed credit union efforts, and take that message to the people.This person doesn't want capital going to your local businesses.Or, even to be more politic, support the challenger in a race withan anti-credit union incumbent. The trade groups PACs very rarelydo this.

What could be the harm? These lawmakers aren't likely to returnto Washington next Congress. And if they do, they aren't going tosupport credit unions anyway. Credit unions have shown some cloutin helping their friends get re-elected in tough fights such asPaul Kanjorski and Joe Lieberman. Now is the time to see ifelections can be influenced in the opposite direction.

Credit unions have maintained the proverbial white hat in theirpolitical activities, but if done strategically, credit unions'political clout could grow exponentially by keeping someone fromgetting elected.

To earn a healthy respect, you not only need to know how to workwith people-even difficult ones-99.9% of the time, but it doesn'thurt for a little fear to be lingering in the back of their mindseither. Certainly not bullying, but just that type of respect anemployee might have for their boss. The two can work very welltogether, but the employee always knows the boss can control thefuture of that employee. The lawmakers are our employees, not theother way around.

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