A pair of lawmakers have introduced a measure they said would increase the credit union lending limit, thereby aiding small business loan access.
Officials said Reps. Vicente Gonzalez (D-TX) and Brian Fitzpatrick (R-PA) presented the Member Business Loan Expansion Act as a means of expanding credit union lending ability to $100,000 — which doubles the current $50,000 lending threshold.
“Our nation is founded on the idea of opportunity, and this common-sense bill will enable credit unions to help their members with their business lending needs in a far more robust manner than currently allowed by law,” Gonzalez said. “As a small business owner myself, I can empathize with the need for cash flow to keep the doors open and the staff paid and customers happy. Now, more than ever, we need to support our small businesses and entrepreneurs, who help create hundreds of thousands of jobs throughout the country.”
The legislation seeks to update the Credit Union Member Business Loan authority via current federal law — adjusting for inflation.
“Small businesses in every community across our country continue to suffer from rippling effects of the COVID-19 pandemic,” Fitzpatrick said. “As they navigate through these uncertain economic times, having to establish relationships with new lenders only adds to their burdens. Our bipartisan legislation would ensure that our community credit unions have the maximum flexibility necessary to provide their small business members with the credit access and financial support they will need in the aftermath of the pandemic.”