Thaler: MBL relief will allow CUs to help more small biz
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to members of a House Small Business subcommittee ahead of its hearing today on how to kick start entrepreneurship and Main Street economic recovery to reiterate the association’s call for relief for credit unions from the arbitrary member business lending (MBL) cap.
In the letter sent Wednesday, Thaler noted credit unions' participation in the Small Business Administration’s (SBA) paycheck protection program (PPP), which has “helped countless main street small businesses survive the lockdowns required by the current pandemic.”
Thaler urged the committee to consider several changes to the Federal Credit Union (FCU) Act as they begin to examine the long-term recovery of small businesses that will allow credit unions to continue to provide much-needed access to capital to their members.
Specifically, Thaler noted the arbitrary restrictions contributing to the MBL cap under the FCU Act and reiterated the association’s call for relief from the MBL cap amid the coronavirus pandemic.
“As the country faces recovery from the impact of COVID-19 on the economy, many credit unions have the ability to go beyond SBA programs to help small businesses create jobs and stimulate the economy,” wrote Thaler. “However, due to the outdated and arbitrary MBL cap, that ability is hampered. Providing relief from the cap would help provide economic stimulus and create jobs without using taxpayer funds.”
Thaler went on to voice the association’s support for H.R. 6789, the Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act of 2020, introduced by Rep. Brad Sherman, D-Calif., which includes a provision that allows for temporary relief from the MBL cap for loans to help small businesses recover from the crisis. Similar legislation was introduced in the Senate by Sen. Ron Wyden, D-Ore.
Both bills would allow credit unions with CAMEL rating of 1 or 2 to exempt from their MBL cap loans made within the year from when the national emergency that was declared on March 13, 2020, expires to small businesses to aid in their recovery of the coronavirus pandemic. In addition, both bills would also extend changes to the NCUA's Central Liquidity Facility (CLF) made by the CARES Act through 2021.
NAFCU will monitor the hearing today and will continue fighting for relief for the credit union industry as the nation recovers from the coronavirus pandemic and beyond.
Add to Calendar 2020-09-17 14:00:00 2020-09-17 14:00:00 NCUA’s Subordinated Debt: The Fundamentals and Strategy Having access to capital is incredibly important for any financial depository institution. NCUA has recognized this and as such proposed an amendment to authorize the issuance of subordinated debt by natural person credit unions for purposes of regulatory capital treatment. Currently only low-income credit unions may issue subordinated debt that can count toward their net worth requirement. The proposal allows complex credit unions and new credit unions this option, which will count toward their risk-based capital requirement. This webinar will cover NCUA’s proposal to authorize the issuance of subordinated debt, the process and its usefulness for managing liabilities and capital. It will address the: proposed rule, regulatory approval process, terms of the debt instrument, offering process and eligible investor, reasons to issue subordinated debt and current interest rate environment. Key Takeaways Understand the approval and offering processes Discuss identifying potential investors Review the supplemental capital’s role in longer-term strategic planning Learn the pros and cons and financial impacts of subordinated debt Register Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until September 17, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers (CEOs) Executive Vice Presidents (EVPs) Chief Financial Officers (CFOs) Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand the approval and offering processes. Discuss identifying potential investors. Review the supplemental capital’s role in longer-term strategic planning. Learn the pros and cons and financial impacts of subordinated debt. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Credits: NCCO, NCRM, CPE
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