Removing Barriers Blog

Legislation Introduced! Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act
Posted April 17, 2020 by CUNA Advocacy

Earlier today, Representative Brad Sherman (D-CA) was joined by Representatives Don Young (R-AK), Suzanne Bonamici (D-OR) Brian Fitzpatrick (R-PA) to introduce the Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act. If enacted this legislation would exempt credit union business loans related to the COVID-19 pandemic from the member business lending cap for three years.

Currently law restricts most credit unions’ business lending authority at 12.25% of assets. But credit unions are well capitalized, safe and sound; credit unions for which this cap is limiting have significant business lending experience and additional capital to lend. Keeping this business credit on the sidelines during and after this crisis would make absolutely no sense.

After the bill's introduction, CUNA wrote to the sponsors in support of the legislation saying: 

“CUNA fully supports the Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act, which would provide a three-year exemption to the Member Business Lending cap for loans made by credit unions to aid in COVID-19 crisis relief and recovery. This legislation is targeted to the crisis at hand and will make a difference for America’s small businesses and those they employ."