WASHINGTON – Lawmakers Tuesday night again introduced a bill to raise the member business lending limit for credit unions, for at least the fifth Congress in a row.
The latest bill, which aims to raise the limit from its current 12.25% of assets to 27.5%, was introduced by Sen. Mark Udall, a Colorado Democrat who introduced the same bill in the last Congress. That bill, as with similar measures in at least four previous Congresses, died amid major opposition from the banks. A similar bill is expected to be introduced in the House any day.
Credit unions have been lobbying for greater MBL limits since 1998, when as part of HR 1151, the CU Membership Access Act, Congress set the limit at 12.25% – at the behest of the banking lobby.
“This legislation is a great vote of confidence for credit unions and small businesses. This is a critical time to lift the arbitrary 12.25% member business lending cap on credit unions,” said NAFCU President Fred Becker. “This important legislation would allow credit unions to help small business reinvigorate our nation’s economy.”
