ALEXANDRIA, Va. (9/14/15)--Rep. Ed Royce (R-Calif.) became the latest California legislator to write a letter of support for the National Credit Union Administration’s member business lending (MBL) proposal last week. Rep. Julia Brownley (D-Calif.) became was the first federal legislator from California to pen support for the proposal, and since then a number of other California representatives sent similiar letters of support to the NCUA.
Reps. Pete Aguilar (D), Paul Cook (R), Jared Huffman (D), Tom McClintock (R), Linda Sanchez (D) and Eric Swallwell (D), all of California, wrote to the NCUA in support of the proposal in recent months.
"The California delegation has overwhelmingly supported legislation to raise the MBL cap. These members of Congress understand the important role credit unions play in providing quality business lending services,” said Jeremy Empol, vice president of federal government affairs for the California and Nevada Credit Union Leagues. “The California and Nevada leagues work tirelessly to educate our congressional delegation about this and other issues, which is why so many of them have written to the NCUA on this issue. We applaud their efforts."
The legislators praised the NCUA for introducing the rule, and said it was an important proposal to help ensure small businesses have access to capital from credit unions.
Royce, in his letter, said the regulation would “make it easier for credit unions to provide loans to creditworthy small businesses while continuing to ensure sound risk management practices.”
Rep. Eleanor Holmes Norton (D-D.C.) also wrote in support of the proposal.
Matz responded to Royce and others, thanking them for their support. In her letter to Royce, she expressed appreciation for legislation he has introduced that would make the statutory changes the NCUA is unable to.
Introduced at the NCUA’s June board meeting, the proposed rule would modernize the agency’s MBL regulations, removing most requirements not required by the Federal Credit Union Act, and would create a new category of loans.