WASHINGTON—CUNA is expressing support the Expanding Financial Access for Underserved Communities Act, which it said, “addresses the epidemic of the unbanked and underbanked in areas without sufficient financial services providers by improving access to credit unions.”
CUNA submitted its view in a letter for the record prior to a House Financial Subcommittee hearing at which the legislation was discussed.
“Rather than create a new government program or increase federal spending, reforming archaic field of membership restrictions through the Expanding Financial Access for Underserved Communities Act is a market-based solution leveraging the success of the credit union model,” the letter reads. “This legislation breaks down barriers that keep credit unions from being part of the solution to address financial access for underserved and unbanked communities.”
The Specifics
Specifically, the bill would:
- Allow all Federal credit unions to add underserved areas to their field of membership
- Exempt business loans made by credit unions to businesses in underserved areas from the credit union member business lending cap
- Expand the definition of an underserved area to include any area that is more than 10 miles from the nearest branch of a financial institution
Several credit union leagues also wrote to the subcommittee in support of the bill, including the League of Southeastern Credit Union, the California Credit Union League and Nevada Credit Union League, CUNA noted.
NAFCU also sent its own letter.