WASHINGTON (8/26/15)--Reps. Tom McClintock (R-Calif.) and Eleanor Holmes Norton (D-D.C.) became the latest legislators to express support for the National Credit Union Administration’s member business lending (MBL) proposal this week.
Comments on the proposal are due to the NCUA by Aug. 31.
“I applaud NCUA for providing credit union management flexibility in the process of making business loans that is in observance of modern commercial lending practices and is in keeping with the statutory framework set in place by Congress,” McClintock wrote. “I am committed to providing regulatory relief for businesses in my district, and NCUA’s proposed rule serves that goal for many of my constituents.”
Norton expressed support for raising the MBL cap, currently set at 12.25% of a credit union’s assets. Only an act of Congress can raise the cap, and Norton called the NCUA proposal an important step in that direction.
“Credit unions are an increasing source of capital for businesses, especially small businesses, and provide important services to individuals and businesses in the District of Columbia and across the country,” Norton wrote. “This proposal will increase access to capital, helping to spur economic growth.”
The NCUA’s proposal would replace prescriptive MBL limits and replace them with a “broad, principles-based regulatory approach,” the agency said.
Rep. Julia Brownley (D-Calif.) wrote to the NCUA earlier this month, also expressing support for the proposal, calling it “long overdue.”
CUNA is urging credit unions to comment on the proposal before the Aug. 31 deadline. See "CUNA: MBL guidance should be open for comment prior to final rule" in today's News Now for a look at CUNA's comments on the proposal.