WASHINGTON—Credit unions are well positioned to remove barriers to credit faced by small and minority-owned businesses, CUNA wrote to a House Financial Services Subcommittee.
“Despite field of membership restrictions, credit unions advance financial inclusion and access by locating roughly 70% of credit union branches in racially/ethnically diverse areas compared to roughly 60% of bank branches,” the letter states. “We are pulling together as movement to support our members and make a difference in their lives, but we know that we could do more.”
In the letter, CUNA also expressed:
- Strong support for the Expanding Financial Access to Underserved Communities Act, which would exempt business loans made by credit unions to businesses in underserved areas from the member business lending cap at 12.25% of assets
- Concern over the about the potential for unintended consequences and substantial costs of compliance associates.
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