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Credit unions fight cap law

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A showdown between credit unions and banks could have serious implications for small-business lending. Credit-union lobbying groups in Washington are pushing for legislation that would lift a 12-year-old law that curtails credit-union lending to 12.25% of total assets. Raising the cap to 25% and easing other restrictions would allow credit unions—important sources of financing for many small operations—to extend up to $10bn in additional business loans in the first year the cap is lifted, according to the Credit Union National Association in Washington.

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