Rep. Sherman introduces bill to exempt COVID-19 MBLs from cap for one year
WASHINGTON, DC (May 8, 2020) — Credit Union National Association (CUNA) President/CEO Jim Nussle released the following statement after Rep. Brad Sherman (D-Calif.) today introduced a bill that would exempt credit union loans made during the declared COVID-19 disaster from the member business lending cap (12.25% of assets) until one year after the end of the COVID-19 emergency declaration.
“Businesses and communities around the country are facing economic hardships that haven’t been seen in generations, and this bill will help credit unions deploy much needed capital to those businesses,” Nussle said. “Credit unions have served as financial first responders since the onset of the pandemic and will be vital to the nation’s recovery efforts. This bill will bolster those efforts going forward.”
The House is expected to return to session as early as next week to continue work on the next phase of COVID-19 relief legislation, and CUNA and Leagues have called for such an MBL exemption to be included in the package.
Co-sponsors of the bill include Reps. Don Young (R-Alaska), Brian Fitzpatrick (R-Pa.), Maxine Waters (D-Calif.), Suzanne Bonamici (D-Ore.), Vicente Gonzalez (D-Texas), Eleanor Holmes Norton (D-D.C.), Joe Neguse (D-Colo.), J. Luis Correa (D-Calif.), Alan Lowenthal (D-Calif.), Jeff Van Drew (R-N.J.) and David Trone (D-Md.).
As many small businesses have been coping with the financial effects of the pandemic, credit unions have been hard at work to aid extend access to capital, both in providing individualized support products and facilitating access to the Paycheck Protection Program (PPP). Rep. Sherman’s legislation would allow credit unions to continue to support these Main Street employers well after the PPP has run its course.
About CUNA
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 135 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.
