Delaware House of Representatives Small Business Caucus Luncheon Prep Call January 10th at 10:00 a.m. Call: 267-930-4000 Passcode: 247-693-574 # Credit Union Attendees DEXSTA Federal Credit Union Jerry King, President/CEO Pat Mahaney, Supervisory Committee Dover Federal Credit Union Tim O’Connor, Relationship Manager New Castle County DE Employees Federal Credit Union Francis Lally, Chairman Cooperative Credit Union Association Walter Laskos, SVP Communications Carole Langiu, Director of Communications & Government Affairs Small Business Caucus Luncheon Prep Call th January 10 at 10:00 a.m. Agenda 1. Welcome 2. Purpose of call 3. Why go to the Small Business Caucus Meeting • Credit union voice • Participation helps secure lawmaker participation 4. Who will be at the meeting: • Ad hoc Committee • Small Business Caucus Co-Chairs: Reps. Michael Ramone, Danny Short, and Quinton Johnson • Active Members: Reps. Jeff Spiegelman, Kevin Hensley, Mike Smith, Paul Baumbach, and Ronald Gray • Other Representatives • Business Owners • Community Leaders 5. What to expect at the meeting: • Welcome from Chairs, Introductions, • Delaware Credit Union Agenda o CU Senior Safeguard o Member Business Lending o Social Responsibility • Caucus Agenda • Lunch 6. Lawmaker visits • Schedule Additional agenda items: • Small Business Credit Protection Act of 2019 (Rubio-Kennedy) • Credit Union Support for Federal Workers During Government Shutdown/Furlough Small Business Caucus Luncheon Senate Majority Room, Delaware Legislative Hall th January 17 at 11:30 a.m. Credit Union Attendees DEXSTA Federal Credit Union Jerry King, President/CEO Pat Mahaney, Supervisory Committee Dover Federal Credit Union Chaz Rzewnicki, President/CEO Tim O’Connor, Relationship Manager New Castle County DE Employees Federal Credit Union Francis Lally, Chairman Cooperative Credit Union Association Walter Laskos, SVP Communications Carole Langiu, Director of Communications & Government Affairs Small Business Caucus Members* Rep. Michael Ramone, Co-Chair Rep. Danny Short, Co-Chair Rep. Quinton Johnson, Co-Chair Rep. Jeff Spiegelman Rep. Kevin Hensley Rep. Mike Smith Rep. Paul Baumbach Rep. Ronald Gray *The Caucus is an Ad Hoc Committee, members attend as their schedules allow. The members noted are active members. 1/9/19 Small Business Caucus Luncheon House Majority Hearing Room Legislative Hall, Second Floor th January 17 at 11:30 a.m. Credit Union Agenda 1. Welcome, Introductions and Industry Overview A local credit union overview and introduction of member credit unions will be provided. • Carole Langiu, Cooperative Credit Union Association, Inc. 2. Presentation of Credit Union Senior Safeguard in Delaware A review of the CU Senior Safeguard campaign in Delaware and its importance to consumers will be presented. • Walt Laskos, SVP Strategic Communications, Cooperative Credit Union Association, Inc. • Jerry King, President/CEO, DEXSTA Federal Credit Union 3. Small Business Lending with Delaware’s Credit Unions The importance of member business lending options to Delaware consumers. • Chaz Rzewnicki, President/CEO, Dover Federal Credit Union • Tim O’Connor, Business Relationship Manager 4. Social Responsibility in Delaware The value Delaware’s credit unions bring to the communities they serve. • Carole Langiu, Cooperative Credit Union Association, Inc • Jerry King, President/CEO, DEXSTA Federal Credit Union • Chaz Rzewnicki, President/CEO, Dover Federal Credit Union 10 205 DE Social Responsibility Committee 2018 Report Delaware Credit Unions’ Social Responsibility Committee members met by conference call several times throughout the summer as they researched changing the focus of their fund- raising efforts throughout the state. After much research, and a lot of spirited debate, the Boys & Girls Clubs of Delaware (BGCDE) was selected. The credit unions came together quickly to accomplish a “Supply Closet” drive – collecting items used by the after-school program administered by the BGCDE. With 15 Club locations and 27 programs at schools throughout Delaware, the supply closets are always in need of restocking. In less than a month, the credit unions were able to provide the BGCDE with games, coloring books, crayons and markers, paper goods, and much more! The Committee made an additional presentation in November to Mary Kate Benson, Volunteer Coordinator for the BGCDE, and Julia Durodoye, BCGDE, Senior Executive Resource Director, in the amount of $1,555.00. The Committee is meeting at the end of January to chart the course of support for the BGCDE throughout 2019. In addition to providing support for the BGCDE throughout the state, Delaware’s Credit Unions are actively involved in their local communities they serve through fund-raising activities and volunteer support for many organizations. Delaware State Credit Statistical Overview 3Q2018 Total Credit Unions 17 CUs <$5 M Total Assets 1 Federal Charters 17 CUs $5-100 M Total Assets 9 State Charters 0 CUs >$100 M Total Assets 7 3Q2018 3Q2018 Growth Assets* $2,255,696 -0.87% Members (actual) 246,036 0.89% Savings * $1,999,421 -0.96% Loans* $1,293,957 1.39% Total Capital* $231,944 1.72% Investments* $701,016 -2.90% Capital/Assets 10.28 Delinquency Ratio 1.06% Average Share $8,127 Balance/Member Average Loan $12,034 Balance/Loan Full-time Employees 549 Part-time Employees 65 Employee Wages* $9,049 Volunteers 220 Population of 960,616 Percent of DE population with CU 25.61% Delaware^ memberships 3Q2018 MBL/Commercial Lending Totals Total MBLs $74,089,018 Number MBLs 458 Average MBL $161,766 CUs with MBLs 8 Percent CUs with MBLs 47.1% Estimated Financial Benefits for Delaware Credit Union Members° Total CU Member benefit arising from interest rates on loans, savings products, and $17,113,830 lower fees Total CU member benefit/member $70 Total CU member benefit/member household $147 Estimated Cost of Regulatory Burden in 2017 Total Cost ($Mil) $11 Average Total Cost Per Credit Union $629,519 Average Total Cost per Member Household $98 Source: National Credit Union Administration Call Report Data as September 30, 2018 (3Q2018) *($000) ° Source: CUNA Delaware Membership Benefits Report (3Q2018) ^Source: US Census data estimate as of July, 2017 DELAWARE LEGISLATORS 1- Nnamdi Chukwuocha, D- Wilm/Edgemoor 2- Stephanie Bolden, D – Wilmington 3-Sherry Dorsey Walker, D- Wilmington 4- Gerald Brady, D – Wilm/Chestnut Run 5- Kendra Johnson, D – New Castle 6- Debra Hefferman, D – Bellfonte 7- Raymond Seigfried, D – Arden 8- Quinton Johnson, D – Middletown 9-Kevin Hensley, R – Odessa 10- Sean Matthews, D – Claymont 11- Jeff Spiegelman, R – Townsend/Hartly 12- Krista Griffith, D – Greenville/Hockessin 13- John Mitchell, D – Elsmere 14- Peter Schwartzkopf, D – Dewey Beach 15- Valerie Longhurst, D – Bear/Delaware City 16- Franklin Cooke, D – New Castle 17- Melissa Minor-Brown, D – Wilm. Manor 18- David Bentz, D New Castle 19- Kimberly Williams, D – Newport 20- Stephen Smyk, R – Milton/Lewes 21- Michael Ramone, R – New Castle 22- Michael Smith, R – Pike Creek 23- Paul Baumbach, D – New Castle 24- Edward Osienski, D – Brookside 25- John Kowalko, D – Newark 26- John Viola, D – S. Newark 27- Earl Jacques, Jr, D – Glasgow 28- William Carson, D – Leipsic 29- William Bush, D – W. Dover 30- W. Shannon Morris, R – Camden/Felton 31- Sean Lynn, D – Dover 32- Andria Bennett, D – DAFB/S. Dover 33- Charles Postles, Jr, R – Frederica 34- Lyndon Yearick, R – Camden/Magnolia 35- Jesse Vanderwende, R – Bridgeville 36- Bryan Shupe, R – Milford 37- Ruth Briggs King, R – Long Neck/Georgetown 38- Ronald Gray, R – Bethany Beach 39- Daniel Short, R – Seaford 40- Timothy Dukes, R – Laurel 41- Richard Collins, R - Millsboro The Small Business Credit Protection Act of 2019 (Rubio-Kennedy) Summary: Various state laws and the Fair Credit Reporting Act provide protections to “consumer” credit in the wake of a breach. However, business credit is excluded from the statutory definition of “consumers” and thus, while small business’s nonpublic information has been subject to data breaches, they have no statutory protection. The consistent bias in federal laws incentivizes entrepreneurs to use their personal credit, as opposed to a commercial line of credit, exposing their new business to more personal risk. Using their personal credit is more risky for new businesses because, according to SBA, about 50 percent of small businesses fail within the first five years and about one in three survive to last ten years. The Small Business Credit Protection Act would reduce the bias in the code and protect small businesses by requiring credit bureaus to: • Inform small businesses, within 30 days, if their nonpublic personal data has been exposed to a data breach, • Prohibit credit bureaus from charging small businesses for a credit report within 180 days following a breach and; • Direct GAO to conduct a report determining the economic impact of credit reporting company data breaches have on small businesses. Endorsed by the League of Southeastern Credit Unions & Affiliates .