3/10/2011 Senate bill introduced to raise credit union business-lending cap

Sen. Mark Udall (D-Colo.) yesterday introduced an industry-opposed bill (S. 509) that would raise the member business-lending cap for certain credit unions from 12.25 percent to 27.5 percent of total assets.

The legislation, which has 13 original co-sponsors, would raise the cap for well-capitalized credit unions that have member business loans outstanding at the end of each of the four consecutive quarters immediately preceding their application date; can demonstrate at least five years experience soundly underwriting and servicing such loans; and have the requisite policies and experience in managing them.

Credit unions also would have to satisfy other standards that the National Credit Union Administration Board determines are needed to maintain their safety and soundness. Udall introduced an identical bill in the last Congress. Read the bill.