WASHINGTON—A coalition of conservative groups is urging the new administration to preserve NCUA's new member business lending rule.
The coalition of several nonprofit public policy organizations—including the Competitive Enterprise Institute and Americans for Tax Reform—sent a letter to President-elect Donald Trump and Vice President-elect Mike Pence not only urging the administration to preserve the MBL rule, but also to support bipartisan legislation that will further deregulate business lending by credit unions.
NCUA’s final MBL rule eliminated the personal guarantee requirement and the waiver process.
The coalition addressed how NCUA’s MBL rule spurs small business growth.
“The big winners from this recent rule will be small business entrepreneurs—the real job creators responsible, according to several studies, for the bulk of net new jobs. Many of these entrepreneurs have a difficult time getting capital elsewhere,” the group wrote.
NAFCU backed the coalition.
“NAFCU appreciates the support this coalition has shown towards preserving the NCUA’s MBL rule,” said NAFCU President and CEO Dan Berger. “The backing of these groups supports the fact that this rule is about Main Street small businesses and job creation. NAFCU continues to fight to ensure Main Street credit unions have the ability to provide small businesses the capital they need to grow jobs and in turn, help the economy thrive.”