WASHINGTON—Congressman Jeff Miller (R-FL) has introduced into the House a bill that would exempt business loans made to veterans from the CU MBL cap.
Jared Ross, SVP of association services with the League of Southeastern Credit Unions, told CUToday.info that the bill, HR 1133, has a chance at passing. A similar bill was introduced by Miller late in the previous Congress. “But that was late, and it was a mid-term election year. I think this bill will gain more traction,” said Ross.
Ross said the bill was borne out of a discussion Rep. Miller was having with the league last year. “Jeff Miller is a big supporter of the military, and we were having a conversation about how credit unions are very supportive of the military. The idea for the legislation came out of that conversation.”
HR1133 would amend the Federal Credit Union Act to enhance lending to veterans who want to start or finance a small business. Credit union lending to members for business purposes is limited to 12.25 percent of the institution’s assets. The measure would exempt business loans to veterans from the credit union restriction.
“We should be doing as much as possible to help our veterans with their small business needs,” said Patrick La Pine, president/CEO of the League of Southeastern Credit Unions & Affiliates. “If this legislation is passed into law, it would give military members much needed access to credit. This will help veterans to start a small business or to grow an existing one.”
Miller said that the legislation will not only help CUs make more MBL loans, it will also grant more business loans to veterans, now that the CU can look at the loan as a standard loan, without concern for where the CU stands against its MBL cap.
“The idea to exempt veterans from counting against a credit union’s MBL cap makes a lot of sense,” said Rep. Miller. “With so many of our veterans possessing membership with credit unions, exempting them from this lending cap would allow veterans with an entrepreneurial spirit better access to capital.”
In a released statement, Stu Ramsey, president/CEO of Pensacola-based Pen Air Federal Credit Union commended Rep. Miller for his efforts. “Rep. Miller has been a great advocate for our veterans. Credit unions would love to do more to help veterans and their small business needs. This legislation is well thought out and should help our returning servicemen and women further their dreams.”