Bipartisan bill would provide loan maturity, MBL flexibility

September 7, 2021

Reps. Vicente Gonzalez (D-Texas) and Brian Fitzpatrick (R-Pa.) introduced a CUNA-backed bill Tuesday to raise the maturity limits on loans made by federal credit unions, the Member Business Loan Expansion Act.

“Allowing credit unions to make loans with maturity limits of more than 15 years will help them provide more opportunities for members, including in the student loan space,” said Credit Union National Association President/CEO Jim Nussle. “The current maturity limit is a barrier keeping credit unions from providing additional affordable credit, and we thank Reps. Gonzalez and Fitzpatrick for their bipartisan work to solve this issue.”

The bill would

  • Allow NCUA to grant flexibility to credit unions with regard to the 15-year general loan maturity limit.
  • Raise the member business lending cap “de minimis” threshold to $100,000 (up from the current $50,000)
  • Include credit unions in the Federal Home Loan Bank definition of “community financial institution.”