Credit unions are being asked by the LSCU and CUNA to voice support for Sen. Mark Udall's (D-CO) amendment to
H.R. 5297 which will raise the member business lending (MBL) cap to 27.5 percent of assets. Sen. Udall is expected to offer the amendment today. H.R. 5297, the Small Business Lending Fund Act, passed the House and has moved on to the Senate. Credit unions are being asked to contact their Senators in Alabama and Florida to ask them to support the amendment. To contact your Senator, please see below:
Senator Richard Shelby (R-AL) - 202.224.5744
Senator Jeff Sessions (R-AL) - 202.224.4124
Senator Bill Nelson (D-FL) - 202.224.5274
Senator George Lemieux (R-FL) - 202.224.3041
Credit unions are asked to call right away. Debate on this legislation could be this week. This is the first time MBL has gotten this far and it represents credit unions best shot at getting legislation passed that will help members get much needed credit.
Udall's expected amendment is a U.S. Treasury-backed proposal to increase MBLs to 27.5 percent of assets, which that agency sent to Capitol Hill this month. In addition to more than doubling the current cap, the amendment also may propose that the growth of a given credit union's MBL portfolio may be no more than 30 percent annually; credit unions that wish to lift their MBL cap must be well capitalized, must be lending at a ratio near the current cap for the previous four quarters, must have a minimum of five years of underwriting and servicing MBLs, and ; must demonstrate sufficient experience in managing these types of loans.