SOUTH BURLINGTON, Vt. (1/30/12)--The Vermont credit union regulator entered its rewrite of the state's credit union business lending regulation into the final procedural steps toward adoption.
Regulation B-2012-01 will update Vermont's 11-year-old business lending regulation, which sets guidelines for credit unions to make member business loans (MBL). Changes make the new rule compatible with federal provisions of the National Credit Union Administration and create a more definition of construction and development loans.
The new regulations also increase the limits for qualification of business loans to $50,000 from $15,000, set requirements for the credit unions policy and qualification requirements of underwriters, and update credit union loan limits and accounting limitations.
A public hearing on the revised regulation is scheduled for 10 a.m. ET March in the Vermont Department of Banking, Insurance, Securities and Health Care Administration (BISCHA) office. Public comments will be accepted by BISCHA until March 16.
The Credit Union National Association and credit unions have been pressing for Congress to raise the member business lending limit to 27.5% of assets from the current 12.25% of assets. Doing so would provide $13 billion to lend to small business owners. Injecting that amount into the economy would create roughly 140,000 new jobs at no cost to the taxpayer.