U.S. Reps. Vicente Gonzalez (D-TX) and Brian Fitzpatrick (R-PA) introduced legislation recently that would expand credit union business lending ability to $100,000 — up from the current $50,000.
The bill, the Member Business Loan Expansion Act (H.R.4868), would also allow federal credit union loan maturities past 15 years. The Credit Union National Association (CUNA) voiced its support for the legislation.
“We thank Reps. Gonzalez and Fitzpatrick for their legislation to help credit unions provide more opportunities for members, including in the student loan arena,” CUNA President and CEO Jim Nussle said. “The current limit keeps additional affordable credit from credit unions from the market, and we appreciate the Congressman working together on this bipartisan bill.”
The bill also drew praise from the Texas Credit Union Association and the CrossState Credit Union Association.
“Cornerstone League continues to strongly support Rep. Vincente Gonzalez’s reintroduction of legislation to protect our federal credit unions by raising the maturity limits on loans to more than 15 years, as well as increasing the member business lending threshold to $100,000 for all credit unions,” Texas Credit Union Association Executive Director Gili Carter said. “These are both needed and significant changes that will help our credit unions support their members by providing much needed additional affordable additional credit.”
The two lawmakers also introduced legislation this week that would exempt loans made to veteran-owned business from the member business lending cap.
“We applaud Rep. Brian Fitzpatrick for championing two bills that aim to modernize lending and create more flexibility for credit unions to serve their members, including veterans, in attaining their financial goals,” Patrick Conway, CrossState Credit Union Association president and CEO, said.