Blumenauer Co-Sponsors Credit Union Supplemental Capital Bill
March 1, 2012
March 1, 2012
Rep. Earl Blumenauer, D-Ore., has signed on as a co-sponsor of H.R. 3993, a bill introduced last month that would allow credit unions to accept supplemental capital. The move furthers Blumenauer’s track record of credit union support, as he is also one of 121 co-sponsors of the Small-Business Lending Enhancement Act of 2011, a bill that would raise the cap on credit union member business lending (MBL).
“Credit unions are leading the way, providing vital capital and financial resources to businesses that drive our economy,” Blumenauer said. “This legislation adds to the tools they have to raise funds, invest in communities, grow local businesses and create family-wage jobs.”
Known as the Capital Access for Small Businesses and Jobs Act, H.R. 3993 would allow credit unions to accept supplemental capital that wouldn’t be insured by the National Credit Union Share Insurance Fund (NCUSIF). Credit unions would be able to accept non-share capital accounts, the funds from which could then be used to cover operating losses in excess of their retained earnings. The measure was introduced by Rep. Peter King, R-N.Y., and Rep. Brad Sherman, D-Calif.
The National Credit Union Administration (NCUA) would be responsible for deeming individual credit unions “sufficiently capitalized and well-managed” enough to accept the additional uninsured capital.
Blumenauer’s support of the supplemental capital bill is indicative of his broader belief in the important role of credit unions in strengthening a faltering economy and serving local communities.
“We are thankful for Congressman Blumenauer’s quick leadership on this issue. His support adds a lot of credibility as we talk to the rest of our delegation, which we will be doing later this month in Washington, D.C.,” said NWCUA Director of Legislative Advocacy Jennifer Wagner. “Thanks also to the credit unions in Congressman Blumenauer’s district, who have done a great job educating the congressman on the credit union difference and the important role we play in our communities.”
The bill has been referred to the House Financial Services Committee, where it currently awaits further action.
Questions? Contact a member of the Association’s Legislative Affairs team: