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Some Credit Unions Navigating Under 12.25% Cap, But Too Many Forced to Deny Loans Due to Lending Limit, NAFCU Finds

Despite a continued legislative push to raise NCUA's member business lending cap to 20%, some credit unions are saying the current 12.25% asset cap has not been an impediment to their MBL efforts.

By Michelle A. Samaad | Updated on October 03, 2006

ARLINGTON, Va. — Despite a continued legislative push to raise NCUA’s member business lending cap to 20%, some credit unions are saying the current 12.25% asset cap has not been an impediment to their MBL efforts.

According to NAFCU’s September Flash Report, 92% of the 150 credit unions polled said they’ve managed to continue offering MBLs under the 12.25% asset cap. However, of the credit unions that answered that the cap was a constraint on member business lending, 33% indicated that they denied a member a business loan due to the asset cap.

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