The Obama administration put its support behind raising the cap on member business loans to as much as 27.5% assets in writing, but credit unions may have to wait a while before they start booking more loans.
Treasury Secretary Timothy Geithner wrote House Financial Services Committee Chairman Barney Frank that his department "could support proposals to increase credit union member business lending provided safety and soundness issues are addressed."
Geithner, who was providing details to a proposal outlined by Treasury Department Counselor Gene Sperling at a House Financial Services Committee hearing late last month, said the administration favors an approach that would maintain the current limit of 12.25% of assets for most credit unions but increase the cap for those that meet certain higher standards.
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