WASHINGTON (7/14/14)--Rep. Jeff Miller (R-Fla.) introduced a bill to amend the Federal Credit Union Act to exempt veterans' business loans from counting against a credit union's member business lending (MBL) cap.
The bill, presently known only as H.R. 5061, would officially exclude extensions of credit made to veterans from the definition of a member business loan.
"The idea to exempt veterans from counting against a credit union's MBL cap makes a lot of sense," Miller has said to the League of Southeastern Credit Unions and Affiliates, which represents credit unions in Florida and Alabama. "This bill would make the decision to offer veterans access the capital much easier because it will no longer count against their business lending cap. It will provide opportunities for many more veterans."
The Credit Union National Association supports the bill, which was introduced Thursday.
Currently the MBL cap is set at 12.25% of a credit union's assets. CUNA supports legislation to increase the MBL cap to 27.5% of assets as a means to allow credit unions to better serve members by providing businesses with a much needed increase in access to capital.