SALT LAKE CITY - Representatives for credit unions last week reached a deal with banks on compromise legislation that would ease restrictions on member business loans for state chartered credit unions.
The bill would: eliminate the current six-month wait before a new member can obtain a business loan; increase the current $250,000 cap on individual business loans and index it to the rate of inflation; increase the cap on personal loans from the current 1% of members’ savings plus retained earnings to 4%.
Most of the largest state chartered credit unions in Utah have converted to federal charters in the last few years as the state legislature has tightened restrictions on business lending and fields of membership, and even threatened to tax credit unions. About 15 credit unions have converted to federal charters over the past five years, including: America First CU, Mountain America CU and Goldenwest CU, among others.
