House of Representatives Financial Services Committee advanced eight bills, including legislation seeking to expand financial services access.
The Expanding Financial Access for Underserved Communities Act (H.R. 7003), which was offered by Financial Services Committee Chairwoman Maxine Waters (D-CA), would enable all federal credit unions to apply to the National Credit Union Administration (NCUA) to expand membership to include underserved communities.
The measure would also address communities lacking a depository institution branch within 10 miles and exempt loans made by credit unions to businesses in underserved areas from the credit union member business lending cap.
The Credit Union National Association (CUNA) supported the Expanding Financial Access for Underserved Communities Act and commended the Financial Services Committee for its action.
“Thank you to all on the committee who supported this important legislation and credit unions’ efforts to promote financial well-being for all,” CUNA President and CEO Jim Nussle said. “This legislation provides a commonsense market-based solution to reach the nearly one in five households that are un- or underbanked across the country.”
California and Nevada Credit Union League President and CEO Diana Dykstra said H.R. 7003 adds underserved communities to credit union fields of membership while also removing barriers to the member-business lending cap for these communities.
“This measure is really about creating opportunity and access for many who reside in America’s banking deserts,” Dykstra said. “As we have learned during the COVID-19 pandemic, an overwhelming percentage of individuals and small businesses in underserved communities do not retain a local banking relationship, which is a major problem that H.R. 7003 seeks to resolve.”