Member Business Lending

Impact

Credit unions have been making member-business loans (MBLs) since their inception in the early 1900s. In the first 90 years of their existence, there was no cap on business lending. The current cap was imposed by Congress in the Credit Union Membership Access Act of 1998. This arbitrary cap limits most credit unions to lending no more than 12.25% of their assets to small businesses without any economic, safety and soundness or historical rationale.  

Where We Stand

The NCUA finalized their Member Business Lending Rule in February of 2016, but CUNA continues to urge Congress to act on removing the MBL cap.  Credit unions could lend an additional $16 billion to small businesses, helping them create nearly 150,000 new jobs in the first year after enactment if Congress increases the statutory cap on credit union business lending.  

What We've Told Lawmakers & Regulators
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Removing Barriers Blog
Bankers’ Lawsuit Against NCUA Dismissed

CUNA Advocacy | Oct 25, 2017

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