U.S. Reps. Brian Fitzpatrick (R-PA) and Vicente Gonzalez (D-TX) recently introduced legislation that would expand credit unions’ lending ability from $50,000 to $100,000.
The Member Business Loan Expansion Act (H.R. 5189) would update the Credit Union Member Business Loan authority to keep pace with inflation. It also would increase small businesses’ access to loans.
“Small businesses in every community across our country continue to suffer from rippling effects of the COVID-19 pandemic,” Fitzpatrick said. “As they navigate through these uncertain economic times, having to establish relationships with new lenders only adds to their burdens. Our bipartisan legislation would ensure that our community credit unions have the maximum flexibility necessary to provide their small business members with the credit access and financial support they will need in the aftermath of the pandemic.”
The Credit Union National Association (CUNA) supports the bill.
“Credit unions have long sought to provide essential loans to small businesses – including many that are minority-owned or underserved – but have been constrained under the archaic 15-year loan maturity limit and outdated member business lending definitions,” Jim Nussle, CUNA president and CEO, said. “This new legislation will provide credit unions with increased flexibility to encourage the growth and success of small businesses. It will also ensure that more credit unions can offer affordable, high-quality mortgage loans to consumers by expanding eligibility for (Federal Home Loan Banks) membership.”