A new bill introduced in the Senate would exempt loans credit unions make to veteran-owned companies from the definition of a member business loan.
That would exclude those credits from counting against a credit union’s MBL cap. Currently, credit unions are limited to making business loans up to 12.25% of their total assets.
The legislation, known as Senate Bill 2834, had bipartisan sponsorship in Sens. Dan Sullivan, R-Alaska, and Mazie Hirono, D-Hawaii, and was introduced on Wednesday. The bill was referred to the Committee on Banking, Housing, and Urban Affairs, according to Congress.gov.
Earlier this year, a similar bill was introduced in the House by Reps. Vicente Gonzalez, D-Texas, Paul Cook, R-Calif., Tulsi Gabbard, D-Hawaii, and Don Young, R-Alaska.
The two national credit union trade associations quickly issued statements in support of the bill.
“This bipartisan bill will make it easier for America’s veterans to access credit and invest in their future and their communities,” Jim Nussle, president and CEO of the Credit Union National Association, said in a statement. “Credit unions proudly serve tens of millions of active duty and veteran members and fully support veteran entrepreneurs and their families.”
Nussle said CUNA will be “engaging with lawmakers” as the bill moves through the legislative process.
Brad Thaler, vice president of legislative affairs for the National Association of Federally-Insured Credit Unions, praised the bill as part of the “fight for relief” for credit unions from the “arbitrary member business lending cap.”
“This bipartisan bill will improve veterans' access to necessary capital by removing statutory barriers that hinder credit unions' ability to meet the financial needs of our nation's veterans,” Thaler said in a statement.
