Credit Union MBL Bills Now Pending in House and Senate

April 12, 2011 —As expected, Rep. Ed Royce (R-CA) introduced H.R 1418, the Small Business Lending Enhancement Act of 2011, the companion House bill to S. 509 to allow qualifying credit unions to increase their member business lending to 27.5 percent of assets.

Both bills would increase the MBL cap for credit unions to 27.50 from 12.25 percent of assets, if the credit union meets a number of requirements. Credit unions have to be well capitalized and meet the following other requirements:

1) Have member business loans outstanding at the end of each of the four consecutive quarters in a total amount of not less than 80 percent of the current 12.25% cap;
2) Can demonstrate at least five years of experience of sound underwriting and servicing of member business loans;
3) Has the requisite policies and experience in managing member business loans; and
4) Has satisfied other standards that the National Credit Union Administration (NCUA) Board determines are necessary to maintain the safety and soundness of the insured credit union.

You can view the text at the links here of H.R 1418 or S. 509 (introduced by Sen. Mark Udall).