WASHINGTON–Democratic presidential candidate Hillary Clinton yesterday introduced a proposal aimed at assisting small business start-ups and job creation, as well as a plan to “streamline regulation and cut red tape” for credit unions and community banks.
In a statement released via her website, Clinton called the community based financial institutions the “backbone of small business lending in America,” and said that reducing small lenders’ burdens would improve much-needed access to credit for the nation’s small businesses, which create around two-thirds of new American jobs.
The proposals, which can be found here, are a response to what Clinton said are concerns of small businesses across the country over reduced access to credit. The candidate said that small business loans comprised just 29% of total bank loans in 2012, as compared with 51% in 1995.
In a statement in response to the Clinton announcement CUNA said its research shows that from the start of the economic crisis through March 2016, banks’ small business lending dropped by 12.58%, although that industry’s commercial lending increased by 32.95%. Credit unions, in dramatic comparison, increased small business lending support by 120.53% during the same time period, CUNA said.
In the same statement, CUNA President/CEO Jim Nussle, while noting that CUNA does not endorse a candidate in any presidential election, applauded the Clinton campaign for recognizing the importance of small financial institutions like credit unions to the nation’s job creators.
CUNA’s “Strong Credit Unions. Strong Middle Class.” grassroots campaign focuses on educating all presidential candidates on the value of credit unions to the nation’s economy and the benefits they provide to middle and lower-income individuals.
NAFCU applauded Clinton’s recognition of the importance of credit unions as a resource for capital for small businesses, and cited the impact regulations are having on CUs.
“Credit unions proved their mettle throughout the crisis providing much-needed capital to small business," said NAFCU President and CEO Dan Berger. "Today, they want to continue to help small business and all their members achieve their financial dreams but nearly a credit union a day is disappearing due in large part to the overwhelming regulatory burden.”