It is imperative that all available small business credit is deployable during and after the coronavirus disease (COVID-19) pandemic, CUNA President/CEO Jim Nussle wrote in support to the sponsors of the Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act Friday. The bill, introduced Friday, would exempt credit union member business loans made to help COVID-19 recovery from the member business lending cap.

“Currently law restricts most credit unions’ business lending authority at 12.25% of assets. But credit unions are well capitalized, safe and sound; credit unions for which this cap is limiting have significant business lending experience and additional capital to lend. Keeping this business credit on the sidelines during and after this crisis would make absolutely no sense,” the letter reads.

“As such, CUNA fully supports the Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act, which would provide a three-year exemption to the Member Business Lending cap for loans made by credit unions to aid in COVID-19 crisis relief and recovery. This legislation is targeted to the crisis at hand and will make a difference for America’s small businesses and those they employ,” it adds.

Several sponsors of the bill also signed onto a letter this week calling for member business lending restrictions to be lifted.