Ahead of the House Committee on Small Business’s hearing on access to capital, America’s Credit Unions President and CEO Jim Nussle urged committee members to support legislation that would empower credit unions to provide more support for Main Street businesses.
The Member Business Loan Expansion Act, introduced by Reps. Vicente Gonzalez, D-Texas, and Brian Fitzpatrick, R-Pa., would prevent loans under $100,000 from counting toward the MBL cap and allow federal credit union maturities past 15 years. Nussle noted that this bill would lead to “increased loan availability, reduced burdens on borrowers, and it would make it easier for credit unions to make these loans.”
Additionally, he requested the committee support the Veterans Member Business Loan Act. The bill was introduced by Gonzalez and would exempt loans made to veteran-owned businesses from the MBL cap.
“This bill would 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,” wrote Nussle. “As a result of the close relationships credit unions maintain with their members, credit unions are often willing to assist members when other lenders refuse. Unfortunately, credit unions face a statutory MBL cap that hinders their ability to fully serve the needs of small businesses.”
Nussle concluded by urging the committee to continue “its strong oversight of the Small Business Administration (SBA),” adding that credit unions “stand ready to help small businesses and create jobs.”
America’s Credit Unions will continue to support legislative efforts to increase credit unions’ ability to serve Main Street small businesses and ensure local communities can thrive.
