the safeguards were designed by treasury and the ncua. we estimate the credit unions could land an additional $13 billion to their members who own small businesses in the first year, helping them to create 140,000 new jobs without an outlay of a single taxpayer dollar. as my written testimony describes credit unions have continued to lend to their members throughout the financial crisis. increasing business by 38% since 2007. bubba banks commercial loan portfolios shrank by 5%. currently there are over 330 credit unions need the cap and they account for over half the business loans subject to the cap. these credit unions have been a source of most of the growth and credit union business lending. over the next two years these credit unions will dry up without an increase in the cap and that would be bad for america's small businesses. the utah bill establishes a two-tiered structure for credit union business lending. tier 1 credit unions would be able to engage in business lending up to the current limit. tier 2 credit unions would have to

unfortunately, the ncua has erected obstacles making it extremely difficult for a credit union to become a mutual savings bank. i thank you for this opportunity to share my thoughts and i am happy to answer any questions. >> thank you, mr. wilson. a question for mr. wilson and mr. wilcox -- over the past several years, there have been many versions of legislation to remove or raise the cap for member business lending and credit unions. last year, many changes were made to legislation to give more control to the regulator to determine which credit unions should be able to demonstrate a history on business loans. what do you think about changes made by the senator and do they address any of your concerns? >> thank you very much. i would like to respond to one thing as i began that was in the testimony. that is the subchapter s banks do not pay federal taxes. i am not a subchapter s federal bank. i am a bank that pays taxes. i pay taxes twice. i pay taxes at the bank when we make the money and then i dividend to might owners, the shareholders, and they pay taxes on the same income. it is tr

. $10 i have read all the quotes from bernanke and bair in the and the head of the occ and the ncua in all of them. they said they don't know how to make us a system the system work as a free-market system and we will overrule that and that is that' how got to be in this country. so the bottom line is from a rural perspective and impact federalrn government has a ruralle we're american while we are tried toe p solve one problem we arero t creating two or three others. cou i could care less about the wall street banks. theygo are going to do fine but i we will tell you what. in we lose the banks we lose the banks in our small towns in montana or wyoming or tennessee, you can put another nail in themeri. coffin of rural america. with that i yield the floor to the good senator from tennessee.enneee speech the. senator from tennessee. >> i couldn't agree more. it is amazing in a way past the 2400 page bill a year ago and on all the tough decisions weer deferred to the t regulators and the regulators are now creating all kinds of rules because we know that they had some wisdom that we didn'

. >> chairman, matz, senator udall's legislation would require that the ncua develop an approval process by which a credit union gradually increasing their amount of murmur business lending it engages in. have you given any thought as to what that process might look like and how you might implement it? >> yes, the tiered process will be very helpful in terms of increasing our supervisory ability and ensuring safety and fairness because credit unions will still be able to make loans up to 12.25% of assets, but to get above that, there's guidelines. have business loans for five years, be well-capitalized, and well-managed, and they'll have to be at or above 80% of the cap, but we'll come behind that with regulations to ensure that even above and beyond that, that the credit unions that go above the cap do so in a moderate way that they crawl before they washing so we -- walk, so we won't necessarily let them go up to 30% increase in one year, but probably have regulations that modify that, and let them increase more gradually than that. >> the second panel suggests that credit unions are m

that's why we had some ncua because lot of r. dee believes the same thing. not everybody believes they're ought to be a regulation of drugs. some people are on the downward certain aspects of it, but at the bottom might think we can all agree to begin with that the war on drugs needs to end. and so it -- [applause] the institute of the black world 21st century can be gathered on this day to declare -- and i don't like to use war now that she's, but this is so bad i had to even convince myself to use a war paradigm. a war waged almost the same way we've wage on drugs and glad to be associated because we claim not to have any particular expertise here. i mean, we are glad to have all these land panelists here. i don't come here claiming to know that i'm a drug policy reform expert. i'm not. what i am, however, is a veteran social and justice political activist. i've been on this along time and when i see something is wrong that is my charge and challenge to see what is wrong to analyze it and call us to action. so we are going to be calling to everybody on thi