Proposed bill would exempt loans to veterans from MBL cap
WASHINGTON, DC (April 10, 2019) — Reps. Vicente Gonzalez (D-Texas), Tulsi Gabbard (D-Hawaii), Paul Cook (R-Calif.) and Don Young (R-Ark.) introduced a bill today that would exempt loans made to veterans from counting against credit union’s member business lending (MBL) cap.
The bill would officially exclude extensions of credit made to veterans from the definition of a member business loan. Credit Union National Association (CUNA) supports the bill as it would provide credit unions the opportunity to provide more help to veterans for their small business needs.
“This bipartisan legislation will make it easier for America’s veterans to access capital and invest in themselves and their communities. Credit unions proudly serve tens of millions of active duty and veteran members and fully support veteran entrepreneurs and their families. We thank Reps. Gonzalez, Gabbard, Cook and Young for their leadership on this issue, and look forward to engaging with lawmakers as this bill moves through the legislative process.”
Currently the MBL cap is set at 12.25% of a credit union’s assets, or 1.75 times the credit union’s net worth, whichever is lesser. CUNA supports legislation to increase the MBL cap as a means to allow credit unions to better serve members by providing businesses with a much-needed increase in access to capital.
CUNA sent a letter for the record to the bill cosponsors. Read the letter in full here.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 115 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.