Rep. Maxine Waters (D-Calif.), ranking member of the House Financial Services Committee, has signed onto two regulatory relief bills that would help credit unions lend additional capital to businesses.
Waters added her support to the Credit Union Small Business Job Creation Act (H.R. 1188) and the Credit Union Residential Loan Parity Act (H.R. 1422). H.R. 1188, introduced by Reps. Ed Royce (R-Calif.) and Gregory Meeks (D-N.Y.), would raise the cap on credit union business lending to 27.5% of assets, above the 12.25% required by current statute.
“Credit unions play a crucial role in providing access to credit and capital for businesses across the country,” Waters said. “Today, I'm proud to join with Representative Ed Royce and my colleagues on both sides of the aisle to support bipartisan legislation that responsibly expands credit unions’ ability to lend and, in the process, help businesses succeed.”
H.R. 1422, introduced by Royce and Rep. Jared Huffman (D-Calif.), would amend the Federal Credit Union Act to exempt loans to purchase one- to four-unit non-owner occupied residential dwellings from the member business lending cap.
The California and Nevada Credit Union Leagues have retained a strong relationship and worked with Waters, as have her local credit unions--primarily Kinecta FCU, Manhattan Beach Calif.
“The California and Nevada Credit Union Leagues extends our continual appreciation to the bipartisan efforts led by Rep. Royce, Meeks, and Huffman,” said Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues. “With the addition of Ranking Member Waters, we are hopeful these bills have the traction to advance in the legislative process.”
CUNA sent a letter in April to a House Financial Services Committee subcommittee leadership, touting the importance of member business lending relief in order for the economy to recover.
CUNA President/CEO Jim Nussle also wrote an op-ed in the Huffington Post earlier this month about the importance of increasing the member business lending cap. Royce circulated the op-ed to Congress during National Small Business Week.
Royce thanked Waters for joining the bipartisan effort to help small businesses access additional capital.
“Freeing up our nation’s credit unions to grow their local economies isn’t a partisan cause, and I thank Ranking Member Waters for her support of these proposals that are backed by both Democrats and Republicans,” he said. “Removing these arbitrary lending restrictions in this manner unlocks capital for small businesses looking to hire, expand and invest, all the while ensuring the safety and soundness of the credit union system.”