Rep. Carney Co-Sponsors Member Business Lending Bill
Congressman Chris Carney (D-10) on Friday signed on to co-sponsor H.R. 3380, the Promoting Lending for America’s Small Business Act, becoming the fifth Pennsylvania co-sponsor. Carney joins Pennsylvania Representatives Kathy Dahlkemper (R-3), Joe Pitts (R-16), and Tim Holden (D-17) in supporting the legislation of main sponsor, Congressman Paul Kanjorski (D-11).
The House bill now enjoys the support of 72 co-sponsors. Sixteen legislators signed up last week after credit union leaders made Hill visits during CUNA’s Governmental Affairs Conference and encouraged support of the member business lending legislation.
Senator Arlen Specter (D-PA) signed on to support S. 2919, the Senate version of the legislation.
H.R. 3380 and S. 2919 would allow credit unions to lend as much as 25% of their total assets to members that own small businesses and would raise the “de minimis” threshold related to these loans to $250,000.
Credit unions are encouraged to send letters to Congressman Carney and Senator Specter, thanking them for sponsoring the bill. Click here for contact information.
Harrisburg Happenings
You can find this week’s edition of Harrisburg Happenings at http://www.pcua.coop/Affairs/Legislative-Publications.aspx. This week's edition is a wrap-up of events from the CUNA GAC, held in Washington, D.C., last week.
B2GO Credit Union Compliance Training Programs
Sign up for two Association-sponsored Credit Union Compliance Training Programs for your staff and/or volunteers, and get a third one FREE. To receive this offer, credit unions must sign up before March 31, so hurry – training dates will fill up fast.
In 2009, the Association’s compliance staff conducted more than 60 fee-based training programs. The fee-based trainings include Bank Secrecy Act for staff and volunteers, Consumer Deposit Account Compliance, Business Deposit Accounts, Consumer Lending, and more.
Association staff will come to your credit union location to conduct these fee-based training programs which last about 90 minutes and include training materials, quiz, and training certificate for each participant.
The training investment is $600 per program (plus travel expenses) for credit unions $20 million in assets or more, and $325 per program (plus travel expenses) for credit unions under $20 million in assets.
For more information about the training program or to find out how to sign up, contact the Association’s Compliance Department at 800-932-0061, Option #3.
Get Ready For Youth Week – April 18-24
Early bird pricing on National Credit Union Youth Week promotional items ends March 12. Save up to 10% by ordering soon. Items do not include the Youth Week date this year at the request of credit unions who said they’d like to use the products year-round.
And, while you’re thinking of Youth Week, remember to register your Saving Challenge Goals. It’s quick, easy, free, and shows your support of a national credit union initiative.
Youth Week
Frauds & Scams
Frauds & Scams
Text Message Scam
Freedom United FCU in Rochester, PA, has received numerous calls from people reporting that they received a text message from the credit union regarding their credit card. The text message scam advises that the credit card has been restricted and asks recipients to call 1-866-451-2678. The number (which is fraudulent) goes to an automated system which asks callers to enter card number, expiration date, and PIN number. The recipients who have reported receiving the fraudulent message have not been actual members of Freedom United.
This is a good reminder for credit unions to advise members never to respond to these types of messages.
Newsmakers
Newsmakers
American Heritage FCU, Philadelphia, celebrated the opening of its new King of Prussia branch on February 22. The new facility, located in the Valley Forge Shopping Center, features four teller stations, a night depository, an Internet café, and a free coin counting machine. There is an outside surcharge-free ATM to meet member and non-member cash needs 24 hours a day, 7 days a week.
Employees and members of AmeriChoice FCU, Mechanicsburg, worked together to raise more than $1,000 for the Haiti Relief Fund, organized through the Worldwide Foundation for Credit Unions. AmeriChoice employees sold Haiti Relief Donation Cards at the teller lines of all offices, giving members and staff the opportunity to make a donation. The credit union matched the first $500 raised. In less than two weeks, the credit union raised more than $1,000. “It is amazing what a small group of people can do when they work together for a great cause,” said Toni Montgomery, Community Relations Manager. “The credit union movement is all about People Helping People and this is a great example of that philosophy in action.”
Freedom Credit Union, Warminster, launched its official Twitter page, twitter.com/FreedomCUinPA, as part of an overall social networking initiative, aimed at educating and bringing value to its members. Freedom also can be found on Facebook by visiting facebook.com, searching for Freedom Credit Union, and looking for the green and white logo which represents Freedom Credit Union.
National News
National News
Small biz owners write Congress to support CUs
WASHINGTON (3/1/10)--While Credit Union National Association (CUNA) representative Ronald Covey testified before a joint House committee hearing on Friday, credit union advocacy on the Hill was also taking place at other levels, with credit union members that are also small business owners testifying on credit union's behalf.
The testimony came in the form of 400 letters from both longtime and rookie small business owners who employ as few as 15 and as many as 100 employees in fields as disparate as medicine and manufacturing.
Fourteen of the letters were collected by Rep. Paul Kanjorski and were submitted for the record during Friday's joint House committee hearing on small business lending, and a total of 400 letters have been sent to various Representatives and Senators in Washington.
In the letters, the business owners testified on the boost that credit union lending has provided to their businesses. Many of these business owners were rejected by their banks when they came looking for loans, and turned to their community credit unions for the funds needed to pay their employees and take care of both themselves and other business expenses.
In his testimony delivered Friday before the House finance and small business committees, Covey said that restricting business lending by credit unions "does a great disservice to business owners everywhere, and stymies job growth."
CUNA has estimated that legislation that would increase the "de minimis" threshold of a member business loan and lift the current member business lending cap of 12.25% to 25% of a credit union's assets could create as many as 108,000 new jobs during the first year following its enactment.
Such legislation, which is currently awaiting action in both the House and the Senate, would also create as much as $10 billion in new funding for small businesses over the course of a year, and would not cost a dime of taxpayer money.
Flood insurance, other programs expire as tax bill awaits Senate action
WASHINGTON (3/1/10)—The Senate adjourned last week without taking up a temporary extension for such programs as the National Flood Insurance Program, Stimulus Act small business loan guarantee programs, as well as federal unemployment insurance and COBRA benefits.
The House last week passed similar legislation that would have extended these and other federal programs through March 28. However, since the Senate did not act, those and other federal programs expired Sunday.
It is expected that the Senate may vote on H.R. 4154, the American Workers, State, and Business Relief Act, this week. That bill would extend these federal programs through the end of the year.
That legislation also has several other provisions that are of interest to credit unions, including language affecting the new markets tax credit. The legislation would also extend some fee reductions and eliminations associated with the small business loan programs contained in the Stimulus Act until the end of 2010. Credit unions should also note S. 3018, the Bipartisan Tax Fairness and Simplification Act, Senate tax legislation that was introduced by Sens. Ron Wyden (D-Ore.) and Judd Gregg (R-N.H.) last week. The legislation, which is a comprehensive tax reform package, would, among other things, legalize, regulate and license Internet gambling.
The compliance date for the Unlawful Internet Gambling Enforcement Act (UIGEA), which would require credit unions and other financial institutions to establish and implement policies and procedures to identify and block restricted Internet gambling transactions, was recently pushed back until June 1, 2010. However, the Credit Union National Association and others have stated that simply pushing back the compliance date does not resolve the many issues that credit unions and other financial institutions have with the tenor of the UIGEA legislation.
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