A group of 13 conservative, libertarian and free-market organizations wrote to President-elect Donald Trump and Vice President-elect Mike Pence Tuesday to urge the incoming administration to preserve NCUA’s member business lending (MBL) rule. CUNA strongly supports the rule.
CUNA believes NCUA’s MBL rule is an important piece of regulatory relief for credit unions, one that gives credit unions greater flexibility and autonomy in offering commercial loans. The rule strips all restrictions from the MBL rule that are not specifically laid out in the Federal Credit Union Act.
The group that sent the letter to Trump and Pence also strongly supports the rule, citing the job creation that will come along with additional capital available to small business entrepreneurs.
“The big winners from this recent rule will be small business entrepreneurs—the real job creators responsible, according to several studies, for the bulk of net new jobs. Many of these entrepreneurs have a difficult time getting capital elsewhere,” the letter reads. “According to Pepperdine University economist David M. Smith, ‘credit unions grant a greater percentage of business loans to small business owners’ than banks do.”
The group also said the rule would advance the incoming administration’s goals of strengthening domestic energy and manufacturing and helping veterans, since many credit unions were formed by employees of energy companies, and that many credit unions focus efforts largely on military populations, helping veteran-owned businesses.