Take action NOW on MBL bill!

The U.S. Senate is currently debating H.R. 5297, the Small Business Lending Fund Act. This legislation would, among other things, create at $30 billion fund to encourage community banks to lend to small businesses.

Senator Mark Udall has introduced an amendment to this bill to increase the credit union member business lending cap. The language of the amendment is identical to the language that Treasury submitted to Congress earlier this year.

The Udall Amendment would increase the credit union member business lending cap to 27.5% of total assets if they meet certain criteria and are approved by the NCUA. To lend in excess of the current 12.25% cap (Tier 2), a credit union would have to be well capitalized; at or above 80% of the current MBL cap for one year before applying; have five or more years of MBL experience; have a history of strong MBL underwriting and servicing; and have strong management, an adequate capacity to lend and policies to manage increased MBLs.

The Udall Amendment includes additional provisions intended to protect the National Credit Union Share Insurance Fund:  (1) MBL portfolio growth cannot exceed 30% per year for credit unions in the higher MBL tier and (2) Tier 2 credit unions must stop making business loans if they fall below 7%.

MBL effect on employment by state

Call your Senators through the Capitol Switchboard - 202-224-3121

Grassroots Action Center - CUNA Capwiz

Call to Action

Sample Constituent Letter