Reps. EdRoyce (R-Calif.) and Greg Meeks (D-N.Y.) reintroduced theCredit Union Small Business Jobs Creation Act on Monday that wouldraise the credit union member business loan cap from 12.25% to27.5% of assets for eligible institutions.

Both CUNA and NAFCU support the bill.

The language of the legislation is similar to a bill introducedin the last Congress by Royce and Rep. Carolyn McCarthy (D-N.Y.) toraise the cap.

“We thank Reps. Royce and Meeks for their continuedcommitment to credit unions and their confidence in credit unions'ability to help small business,” NAFCU President/CEO Dan Bergersaid. “This bill would help credit unions do more to meet thecredit needs of their member small businesses and, in turn, helpgrow jobs. We look forward to working toward its enactment.”

Meeks and Royce are both members of the House Financial Services Committee. Theirlegislation would permit the NCUA Board to approve an applicationsubmitted by an insured credit union for a 27.5% MBL cap if itmeets certain criteria. The credit union must demonstrate at leastfive years of sound underwriting and servicing of MBLs. The creditunion must also have met at least 80% of its current cap for thepast four consecutive quarters. The institution has to beclassified as well capitalized.

“I thank Reps. Royce and Meeks for their strong leadership andsupport of credit unions and small businesses,” CUNA President/CEOJim Nussle said. “This common sense legislation would allow creditunions to do so much more to help small businesses grow, creatingjobs for hard working Americans and boosting our economy.”