Action Alert on MBL: Likely delayed action gives credit unions more time to seek support
07/15/2010 01:57 pm
Credit unions are being asked by the LSCU and CUNA to voice support for Sen. Mark Udall's (D-CO) amendment (SA#4443) to the small business lending bill (
H.R. 5297) which will raise the member business lending (MBL) cap to 27.5 percent of assets. CUNA and LSCU have received reports that it is likely the Senate may delay action on the bill, possibly until after the August recess.
Sen. Udall (pictured left) gave a powerful speech on the Senate floor Tuesday night about the need for this amendment. Udall spoke about the vital assistance credit unions are providing their members who own small businesses, especially during this period when banks aren't lending.
Click here to view his full speech.
Udall's amendment is a U.S. Treasury-backed proposal to increase MBLs to 27.5 percent of assets. In addition to more than doubling the current cap, the amendment also proposes 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.
Credit unions are asked to contact their Senators in Alabama and Florida to ask them to support the amendment. To contact your Senator, see below: