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Ed Royce	Greg Meeks

Reps. Ed Royce, R-Calif., andGreg Meeks, D-N.Y., both on the House Financial Services Committee, today reintroduced NAFCU-backed legislation to raise the credit union member business loan cap from 12.25 percent to 27.5 percent of assets for eligible institutions.

Titled the Credit Union Small Business Jobs Creation Act, the MBL cap lift bill advances a key piece of NAFCU's five-point plan for credit union regulatory relief. NAFCU President and CEO Dan Berger welcomed the bill and pledged NAFCU's support in seeking its passage.

"We thank Reps. Royce and Meeks for their continued commitment to credit unions and their confidence in credit unions' ability to help small business," said Berger. "This bill would help credit unions do more to meet the credit needs of their member small businesses and, in turn, help grow jobs. We look forward to working toward its enactment."

Today's bill is similar to H.R. 688 introduced last Congress by Royce and Rep. Carolyn McCarthy, D-N.Y. It would allow the NCUA Board to approve an application by an insured credit union for a 27.5 percent MBL cap under certain conditions. Among those:

• the credit union has met at least 80 percent of its current cap for the past four consecutive quarters;
• it is classified as "well capitalized";
• it can demonstrate at least five years of experience of sound underwriting and servicing of MBLs.

This bill, like previous versions, would cap growth in MBL portfolios to no more than 30 percent a year for credit unions authorized for the higher cap.