FOR IMMEDIATE RELEASE
Contact: Vicki Christner – CUNA Communication; 202-508-6754; firstname.lastname@example.org
Washington, D.C. (June 18, 2015) – Following the National Credit Union Administration (NCUA) introducing a proposed rule on member business lending (MBL), Jim Nussle, President and CEO of the Credit Union National Association (CUNA), released the following statement:
“Credit unions have been making business loans since their inception in the 1900s, yet their ability to lend to businesses is currently stifled. Today, more than 1,000 credit unions are at or near the arbitrary MBL cap put in place in 1998. NCUA’s proposed rule to remove the guarantee requirement, eliminate the need for waivers, remove loan participations against the MBL cap and remove the loan-to-value limits seem like a step in the right direction. CUNA is reviewing NCUA’s proposed principle-based rule and working with our members to assess the real regulatory relief this proposal offers, as well as conducting an economic analysis of the proposed cap calculation change.
“We appreciate NCUA’s interest in making changes to MBL and we know that more can be done – which is why we’ll be seeking further action on behalf of our 100 million members. If credit unions were not constricted by the arbitrary MBL cap, they would have the ability to lend over $14 billion more to small businesses, boosting the economy and helping small business owners create over 152,000 jobs in just one year. NCUA’s action proves that the regulator wants more flexibility in MBL. It’s time for Congress to take action; CUNA and our state credit union associations will continue to work diligently on behalf of our members to seek further MBL change.”
With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves America's credit unions, which are owned by more than 100 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information about CUNA, visit www.cuna.org or follow @CUNA on Twitter. For more information about credit unions, visit www.aSmarterChoice.org and follow @asmarterchoice on Twitter. Visit the CUNA Press Room for a full listing of media mentions, press releases and resources to stay informed on current events within the credit union industry.