Kanjorski/Royce Introduce House MBL Bill Posted by AVCU on 11:06 AM

Late yesterday, U.S. Representatives Paul Kanjorski and Ed Royce introduced legislation to expand credit union member business lending authority. The legislation is intended to encourage economic growth and provide U.S. small businesses more options for affordable capital at a time when it is sorely needed. Kanjorski and Royce are senior members of the House Financial Services Committee. Their bill, H.R.3380 - the Promoting Lending for America’s Small Business Act, would:

· raise the statutory limit on credit union member business loans from 12.25% of assets to 25% of assets,

· raise the minimum amount for counting a loan toward the MBL ceiling from $50,000 to $250,000, and

· exempt business loans to underserved areas and to non-profit religious organizations from inclusion in a credit union’s MBL ceiling.

Credit unions have a track record of providing member business loans safely and this legislation could help address the current credit crunch faced by small businesses. Lifting the credit union MBL cap has the support of small business and public policy groups like the National Small Business Association, the National Farmers Union, the League of United Latin American Citizens, the National Association for the Self Employed, the National Cooperative Business Association, the National Cooperative Grocers Association, and the Ford Motor Minority Dealer Association.

Estimates are that the legislation could make available up to an additional $10 billion in small business loans in the first year. For more details see CUNA’s news article.