News

Sen. Mark Udall introduces bill to raise credit unions’ member business lending cap

Mark Udall

Mark Udall

Sen. Mark Udall (D-Colo.) introduced a bill on Thursday that would raise the credit union member business lending cap, a move advocated by the National Association of Federal Credit Union’s five-point plan for regulatory relief.

S. 968, the Small Business Lending Enhancement Act—which is similar to other MBL measures—would allow the National Credit Union Administration to raise a credit union’s MBL cap from the current 12.25 percent of assets to 27.5 percent under certain conditions.

To qualify for the MBL increase, an institution must have met at least 80 percent of its current cap for the past four consecutive quarters, must be classified as “well-capitalized,” must be able to demonstrate five years of sound underwriting and MBL servicing experience, must have policies and experience in managing MBLs and must have satisfied other NCUA requirements “necessary to maintain the safety and soundness of the insured credit union.”

“NAFCU thanks Sen. Udall and the cosponsors of the Small Business Lending Enhancement Act for recognizing the value of credit unions as providers of credit to small businesses,” NAFCU President and CEO Fred Becker said. “Americans need jobs, and more money for small businesses means more jobs. Lifting the member business lending cap will allow our nation’s credit unions to do more to help our small businesses create jobs and help keep our economy back on the road to prosperity.”

Comments are closed.