Credit unions are cheering bipartisan legislation introduced Monday in the U.S. House of Representatives that is aimed at helping small businesses recover more quickly from the economic downturn caused by the coronavirus pandemic.
The bill, sponsored by Reps. Brad Sherman, D-Calif., and Brian Fitzpatrick, R-Pa., would allow credit unions to exempt any loans made to small businesses since March 13, 2020, from the member business lending cap. If it is passed the National Credit Union Administration would be required to issue implementing regulations that ensure a credit union’s safety and soundness are not impacted by the loans.
Similar legislation was introduced in the House and the Senate last year, with Sherman also attaching his name to the
The National Association of Federally-Insured Credit Unions said in a release that it applauds the legislation.
“Credit unions have long sought to provide essential loans to small businesses – including many owned by minority populations – more so than their counterparts in the banking industry," Dan Berger, president and CEO of the National Association of Federally-Insured Credit Unions, said in a press release. "This bill will help ensure credit unions are able to provide small businesses with the funding they need to keep their doors open, pay their employees, and continue to provide important services in their communities."
The Credit Union National Association also applauded the legislation. It would help ensure “all available business credit is deployable during and after the pandemic so small businesses can get back to business and Main Street communities can recover quickly,” CUNA President and CEO Jim Nussle said in a press release.
