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U.S. Reps. Ed Royce (R-CA) and Gregory Meeks (D-NY) have introduced HR 1188, the Credit Union Small Business Jobs Creation Act. The bill increases the member business lending (MBL) cap for qualified credit unions from 12.25 percent to 27.5 percent.
“Current regulations arbitrarily cap the ability of our nation’s credit unions to lend to small businesses. Main Street businesses looking to expand and hire more workers have suffered as a result,” said Rep. Royce. "The Credit Union Small Business Jobs Creation Act removes this obstacle to lending and ensures that qualified credit unions are better able to support Americans who need loans to start, sustain, or grow their businesses.”
The Credit Union Small Business Jobs Creation Act increases the MBL cap from 12.25 percent to 27.5 percent for certain credit unions. Under the bill, to qualify for the higher cap a credit union must be well capitalized, have a history of member business lending experience, be operating near its current cap for at least one year, and receive approval by the National Credit Union Administration (NCUA) for a higher cap.
“By increasing the business lending cap on credit unions, this bill will create jobs, grow the economy, and help businesses throughout the country,” said Rep. Meeks. “It has long been known that small businesses are the key engine of job growth in this country. But only qualified and responsible credit unions with a history of business lending will be eligible under this bill. This is necessary to ensure the stability and an appropriate balance with our financial institutions.”
Reps. Royce and Meeks, senior members of the House Financial Services Committee, introduced the Credit Union Small Business Jobs Creation Act and both urge swift action from their colleagues to advance this bipartisan legislation.