Reps. Ed Royce (R-Calif.) and Greg Meeks (D-N.Y.) reintroduced the Credit Union Small Business Jobs Creation Act on Monday that would raise the credit union member business loan cap from 12.25% to 27.5% of assets for eligible institutions.
Both CUNA and NAFCU support the bill.
The language of the legislation is similar to a bill introduced in the last Congress by Royce and Rep. Carolyn McCarthy (D-N.Y.) to raise the cap.
“We thank Reps. Royce and Meeks for their continued commitment to credit unions and their confidence in credit unions' ability to help small business,” NAFCU President/CEO Dan Berger said. “This bill would help credit unions do more to meet the credit needs of their member small businesses and, in turn, help grow jobs. We look forward to working toward its enactment.”
Meeks and Royce are both members of the House Financial Services Committee. Their legislation would permit the NCUA Board to approve an application submitted by an insured credit union for a 27.5% MBL cap if it meets certain criteria. The credit union must demonstrate at least five years of sound underwriting and servicing of MBLs. The credit union must also have met at least 80% of its current cap for the past four consecutive quarters. The institution has to be classified as well capitalized.
“I thank Reps. Royce and Meeks for their strong leadership and support of credit unions and small businesses,” CUNA President/CEO Jim Nussle said. “This common sense legislation would allow credit unions to do so much more to help small businesses grow, creating jobs for hard working Americans and boosting our economy.”
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