Bill to Raise MBL Cap Introduced in Senate

Reporting from CUNA. Sens. Rand Paul (R-Ken.), Sheldon Whitehouse (D-R.I.), and Jack Reed (D-R.I.) introduced a credit union member business lending bill this afternoon to increase the statutory cap to 27.5% of a credit union’s assets, up from the current 12.25%. 

Under the Small Business Lending Enhancement Act of 2015, a credit union would need to be in good standing and have a history of making business loans to qualify for the cap increase. It also would require approval from the National Credit Union Administration.

“This bill will allow the credit unions of Oregon and Washington to inject new capital into economy, spurring the growth of small businesses and boosting employment,” said Troy Stang, President and CEO of the Northwest Credit Union Association. “We thank Senators Paul, Whitehouse and Reed for their leadership in working to open new opportunities for the small businesses of the Northwest.”

A similar bill is pending action in the House. Reps. Ed Royce (R-Calif.) and Gregory Meeks (D-N.Y.) have introduced the Credit Union Small Business Jobs Creation Act (H.R. 1188).

CUNA estimates have shown that the MBL cap change would help credit unions lend an additional $13 billion to small businesses in just the first year after enactment. This money, which would be made available at no expense to taxpayers, would in turn help small businesses create around 140,000 new jobs.

Questions about this story? Contact James Pearson: 206.340.4790, jpearson@nwcua.org. 

Posted in Advocacy News, CUNA, Federal.