Rep. Jeff Miller introduces bill to improve veteran access to small business loan
07/11/2014 07:52 am
HR 5061, introduced by Rep. Jeff Miller (R-FL) Thursday afternoon, would amend the Federal Credit Union Act to enhance lending to veterans who want to start or finance a small business. Credit union lending to members for business purposes is limited to 12.25 percent of the institution’s assets. The measure would exempt business loans to veterans from the restriction.
For years credit unions have been attempting to raise the member business lending (MBL) cap from 12.25 percent of total assets to 27.5 percent of total assets. By raising the MBL cap, credit unions can better serve their members by offering small businesses more access to much needed capital.
“The idea to exempt veterans from counting against a credit union’s MBL cap makes a lot of sense,” says Rep. Miller. “This bill would make the decision to offer veterans access the capital much easier because it will no longer count against their business lending cap. It will provide opportunities for many more veterans.”
The introduction of HR 5061 is the first step. The League of Southeastern Credit Unions intends to make this a priority for the remainder of the 113th Congress. By allowing an exception to the MBL cap, Congress will be sending a strong message that service by veterans is appreciated.
HR 5061 has been referred to the House Committee on Financial Services.