Congressmen Gonzalez and Fitzpatrick Author Legislation to Help Small Businesses
WASHINGTON – On Tuesday, September 7, Congressman Vicente Gonzalez (TX-15) with his colleague, Congressman Brian Fitzpatrick (PA-01) joined forces to introduce the Member Business Loan Expansion Act, which aims to expand the lending ability of credit unions to $100,000. The current lending threshold is $50,000.
The bipartisan bill would update the Credit Union Member Business Loan authority under current federal law to keep pace with inflation, and increase access to loans for small businesses.
“Our nation is founded on the idea of opportunity, and this common-sense bill will enable credit unions to help their members with their business lending needs in a far more robust manner than currently allowed by law,” said Congressman Gonzalez. “As a small business owner myself, I can empathize with the need for cash flow to keep the doors open and the staff paid, and customers happy. Now, more than ever, we need to support our small businesses and entrepreneurs, who help create hundreds of thousands of jobs throughout the country.”
“Small businesses in every community across our country continue to suffer from rippling effects of the COVID-19 pandemic. As they navigate through these uncertain economic times, having to establish relationships with new lenders only adds to their burdens," said Rep. Fitzpatrick. "Our bipartisan legislation would ensure that our community credit unions have the maximum flexibility necessary to provide their small business members with the credit access and financial support they will need in the aftermath of the pandemic.”
“Thank you to Reps. Gonzalez and Fitzpatrick for working to remove a critical barrier keeping credit unions from providing additional affordable credit to consumers,” said Credit Union National Association President/CEO Jim Nussle. “Allowing credit unions to make loans with maturity limits of more than 15 years will help them provide more opportunities for members, including in the student loan space.”
“NAFCU applauds Congressmen Gonzalez and Fitzpatrick for introducing this bipartisan legislation to help credit unions better serve their local communities. Credit unions have long sought to provide essential loans to small businesses – including many that are minority-owned or underserved – but have been constrained under the archaic 15-year loan maturity limit and outdated member business lending definitions. This new legislation will provide credit unions with increased flexibility to encourage the growth and success of small businesses. It will also ensure that more credit unions can offer affordable, high-quality mortgage loans to consumers by expanding eligibility for FHLB membership. This important legislation will provide great benefit to credit unions and their communities and we urge its passage.”
The full text can be found here.