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Support for H.R. 1188, a bill introduced by Reps. Ed Royce, R-Calif., andGreg Meeks, D-N.Y., to raise the member business lending cap to 27.5 percent of assets for eligible institutions, was urged by NAFCU Monday in a letter to House leaders that was shared with all U.S. House members.

In the letter, sent to House Speaker John Boehner, R-Ohio, and Democratic Leader Nancy Pelosi, D-Calif., NAFCU Vice President of Legislative Affairs Brad Thaler said H.R. 1188, the "Credit Union Small Business Jobs Creation Act," would "help provide $13 billion to America's small businesses and create over 140,000 new jobs."

"H.R. 1188 is a viable way to enable credit unions to assist our nation's small businesses with their lending needs," said Thaler.

Introduced Monday, H.R. 1188 is similar to a bill offered 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.

The bill advances a key piece of NAFCU's five-point plan for credit union regulatory relief.

"We thank Reps. Royce and Meeks for their continued commitment to credit unions and their confidence in credit unions' ability to help small business," NAFCU President and CEO Dan Berger said upon the bill's introduction. "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."

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.