WASHINGTON—The Defense Credit Union Council (DCUC), the League of Southeastern Credit Unions and the Maryland and DC Credit Union Association have all sent letters to the leaders of the House and Senate asking for a temporary removal of the member business lending cap on credit unions.
“This request would exempt business loans made to small businesses from current business lending cap,” wrote Anthony L. Hernandez, DCUC president and CEO, who emphasized the suspension would provide economic stimulus without costing taxpayers money.
“America’s credit unions are uniquely positioned and structured to offer this kind of support to the communities where we live, work and play,” wrote Hernandez. “It is our hope to provide our small businesses access to capital in order to make payroll, rent, and order supplies.”
“Once again, as part of our response to the growing economic strain that COVID-19 is causing our country, the Defense Credit Union Council will continue to support Congressional efforts to assist our country and its working families,” Hernandez told CUToday.info. “Doing so sends a clear signal that our nation recognizes their impact in fostering entrepreneurship successfully building our economy. Our focus is always on serving those who serve our country, which is why we are writing to members on both sides of the aisle.”
LSCU Letter
In its letter to Congress, Jared M. Ross, president of the League of Southeastern Credit Unions and Affiliates wrote, “Lifting (or at a minimum suspending) the arbitrary cap on business lending for credit unions would make it easier for business lending credit unions to be there for their members during this global pandemic. Eliminating this cap is made necessary not because credit unions need encouragement to respond to their members affected by disasters such as the coronavirus pandemic, but because Congress imposed a statutory cap on credit union business lending in 1998 at the behest of the banking industry. It is also important to note that eliminating this cap would, in no way, change the way credit unions adhere to regulatory standards as it relates to lending. Credit unions will continue to be safe, sound and well-regulated institutions.”