Washington (Sept. 10, 2015) -
National Association of Federal Credit Unions (NAFCU)
President and CEO Dan Berger issued the following statement in response to
NAFCU-backed legislation introduced today by Sens. Rand Paul, R-Ky., and
Sheldon Whitehouse, D-R.I., that would raise the credit union member business
lending cap - a fix long advocated by NAFCU.
arbitrary credit union member business lending cap is a win-win-win for small
businesses, credit unions, and consumers,” said Berger. “NAFCU applauds
Senators Paul and Whitehouse for their bipartisan leadership in introducing
this important legislation that would unleash additional capital and create
jobs without burdening American taxpayers.”
would allow the National Credit Union Administration (NCUA) to raise a credit
union’s MBL cap from the current limit of 12.25 percent of assets to 27.5
percent, provided the institution:
• has met at
least 80 percent of its current cap for the past four consecutive quarters;
• is classified as “well capitalized”;
• can demonstrate at least five years of experience of sound underwriting and
servicing of MBLs;
• has the requisite policies and experience in managing MBLs;
• has satisfied other standards which the NCUA Board “determines are necessary
to maintain the safety and soundness of the insured credit union.”
is similar to S. 968, the “Small Business Lending Enhancement Act of 2013,” a
bipartisan measure introduced last Congress by Sen. Mark Udall, D-Colo., and
cosponsored by Sens. Paul and Whitehouse.
legislation is similar to H.R. 1188, the “Credit Union Small Business Jobs
Creation Act,” introduced earlier this year by Reps. Ed Royce, R-Calif., and
Greg Meeks, D-N.Y.
Raising the MBL cap is a key component of NAFCU’s five-point plan for credit union regulatory relief.
Association of Federal Credit Unions is the only national trade association
focusing exclusively on federal issues affecting the nation’s federally insured
credit unions. NAFCU membership is direct and provides credit unions with the
best in federal advocacy, education and compliance assistance. www.nafcu.org.