WASHINGTON—CUNA’s Richard Gose said several “coalition partners” have already weighed in with Washington in support of MBL legislation that was introduced last week in the Senate.
The Small Business Lending Enhancement Act of 2015, sponsored by Sens. Rand Paul (R-KY), Sheldon Whitehouse (D-R.I.), and Jack Reed (D-R.I.), would increase the current cap on credit union member business lending for certain credit unions to 27.5% of assets, up from 12.25% today.
The legislation would raise the cap for well-capitalized credit unions that have a history of member business lending, have operated near the current cap for at least one year and have received approval from the National Credit Union Administration.
“We expect to weigh in, and we are well on our way to doing that,” said Gose, SVP of political affairs. “We are looking forward to seeing the momentum move forward and this legislation move forward.”
CUNA estimates the legislation would help create 152,200 jobs within the first year of enactment.
But bankers have already voiced strong opposition.
“Given NCUA’s and credit unions’ lack of expertise in business lending, it remains unclear whether this highly controversial bill is necessary or wise,” said American Bankers Association EVP James Ballentine in a statement last week regarding the new legislation. “ABA will continue to fight all efforts to change or circumvent the member business lending cap.”
Bankers have been turning up the heat in opposition to any type of expansion of member business lending. Most recently bankers helped to generate a record number of comment letters to NCUA on its proposal to help credit unions to expand MBL.