At the heart of Tennessee are the small businesses and entrepreneurs that sustain the local economy. Small businesses employ about half of all private-sector employees and accounted for two-thirds of net new job creation between 2000 and 2017. The current COVID-19 crisis has crippled the economy and credit unions are here to help businesses rebound.
Because credit unions are member-owned and not-for-profit, they know their members and their communities in ways other lenders don’t—creating opportunities for entrepreneurs of all stripes seeking to start or grow a business.
Credit unions have extended business loans to their members for over a century. Since the very beginning, they provided capital to businesses without any restrictions – until banking lobbyists pressured Congress into saddling credit unions with an artificial cap on business lending of 12.25% of assets in 1998, severely limiting their ability to help provide capital to small businesses that desperately need assistance.
Tennessee credit unions provide countless small business loans to their members. But regulatory burdens are holding credit unions back from doing more to help the local economy during this crisis.