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The NCUA on Tuesday provided guidance on its revised member business lending rule, which kicks in Jan. 1, through Letter to Credit Unions 16-CU-11.

In the letter, NCUA Board Chairman Rick Metsger said guidance that "elaborates on the principles of sound commercial lending" and that addresses the statutory cap on MBLs has been incorporated into the new online Examiner's Guide.

"This material will help credit unions understand NCUA's supervisory expectations for sound commercial risk-management practices," the letter stated.

NCUA's final MBL rule eliminated credit unions' personal guarantee requirement and, effective Jan. 1, will eliminate the waiver process. NAFCU praised the rule for easing the regulatory burden on credit unions and allowing them the independence to safely and soundly address the needs of their small-business members.

NAFCU and CUNA are jointly defending the rule in a lawsuit filed by the Independent Community Bankers of America that challenges the agency's authority to issue its latest MBL rule. The trades moved to file an amicus brief last week in support of the NCUA's motion to dismiss the lawsuit.