A number of Congressional leaders – including the ranking Democratic member of the House Financial Services Committee -- announced their support Monday for proposed legislation that would increase credit unions' ability to lend to small businesses.
In a statement released Tuesday, the National Association of Federal Credit Unions praised the leaders who threw their support behind H.R. 1188, also known as the "Credit Union Small Business Jobs Creation Act."
The NAFCU-backed legislation would "increase credit unions' ability to lend to their small-business members," according to the CU trade group.
In addition to Maxine Waters, D-Calif., who is the ranking Democratic member of the House Financial Services Committee, Small Business Committee Chairman Steve Chabot, R-Ohio, and Energy and Commerce Committee Chairman Fred Upton, R-Mich., signaled their support for the measure.
"NAFCU and our members thank Ranking Member Waters, Chairman Chabot and Chairman Upton for their support of credit unions and this important legislation," said Brad Thaler, VP of Legislative Affairs.
Thaler noted that this legislation would help in "removing barriers to credit unions' meeting the needs of their small-business members."
The bill -- which was introduced by Reps. Ed Royce, R-Calif. and Gregory Meeks, D-N.Y. -- would raise the member-business lending cap to 27.5% of assets for eligible credit unions. This legislation currently has 90 co-sponsors in the House. (The Senate companion bill, S. 2028, was introduced by Sens. Rand Paul, R-Ky., Sheldon Whitehouse, D-R.I., and Jack Reed, D-R.I.)
Also on Monday, Rep. Waters announced she supports H.R. 1422, another NAFCU-backed bill. The Credit Union Residential Loan Parity Act would "exempt loans for non-owner-occupied, one to four unit dwellings from credit unions' MBL cap," according to NAFCU. Sen. Ron Wyden, D-Ore., has introduced similar legislation in the Senate.
