NAFCU applauds Sens. Paul, Whitehouse introduction of bill to raise member business lending cap

WASHINGTON, DC (September 11, 2015) — National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement in response to NAFCU-backed legislation introduced today by Sens. Rand Paul, R-Ky., and Sheldon Whitehouse, D-R.I., that would raise the credit union member business lending cap – a fix long advocated by NAFCU.

“Raising the arbitrary credit union member business lending cap is a win-win-win for small businesses, credit unions, and consumers,” said Berger. “NAFCU applauds Senators Paul and Whitehouse for their bipartisan leadership in introducing this important legislation that would unleash additional capital and create jobs without burdening American taxpayers.”

The bill would allow the National Credit Union Administration (NCUA) to raise a credit union’s MBL cap from the current limit of 12.25 percent of assets to 27.5 percent, provided the institution:

• has met at least 80 percent of its current cap for the past four consecutive quarters;
• is classified as “well capitalized”;
• can demonstrate at least five years of experience of sound underwriting and servicing of MBLs;
• has the requisite policies and experience in managing MBLs;
• has satisfied other standards which the NCUA Board “determines are necessary to maintain the safety and soundness of the insured credit union.”

Today’s bill is similar to S. 968, the “Small Business Lending Enhancement Act of 2013,” a bipartisan measure introduced last Congress by Sen. Mark Udall, D-Colo., and cosponsored by Sens. Paul and Whitehouse.

The Senate legislation is similar to H.R. 1188, the “Credit Union Small Business Jobs Creation Act,” introduced earlier this year by Reps. Ed Royce, R-Calif., and Greg Meeks, D-N.Y.
Raising the MBL cap is a key component of NAFCU’s five-point plan for credit union regulatory relief.


The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to or @NAFCU on Twitter.


Marisol Garibay
Vice President, Communications & Media Relations
National Association of Federally-Insured Credit Unions
3138 10th Street North
Arlington, VA 22201
O: (703) 842-2820 ext. 291

Amanda Dela Cruz
Associate Director, Communications
National Association of Federally-Insured Credit Unions
3138 10th Street North
Arlington, VA 22201
O: (703) 842-2263 ext. 263
M: (571) 447-0022

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