CUNA wrote to House Financial Services Committee leadership Tuesday in strong support of the Expanding Financial Access for Underserved Communities Act. The committee discussed the draft legislation during a hearing last month, and CUNA submitted comments of support.

“The Expanding Financial Access for Underserved Communities Act is a market-based solution that would make three changes to the Federal Credit Union Act to enable and encourage credit unions to serve underserved and abandoned communities and promote financial inclusion to all at no cost to the taxpayer,” the letter reads.

The bill would:

• Allow all federal credit unions to add underserved areas to their field of membership;
• Exempt business loans made by credit unions to businesses in underserved areas from the credit union member business lending cap; and
• Expand the definition of an underserved area to include any area that is more than 10 miles from the nearest branch of a financial institution.

“Any serious discussion of policy remedies to address access to financial services to underserved or unbanked persons, businesses and communities must include breaking down barriers in law and regulation that keep credit unions from being part of the solution,” the letter reads. “Credit unions’ field of membership restrictions and the member business lending cap shut out those that need access to mainstream financial services. This legislation is not a panacea to these exclusionary policies, but it does represent a solid step forward toward financial inclusion.”