The NCUA’s Thursday, June 16 meeting is being postponed a day because of a possible Senate Banking Committee hearing on legislation to raise the cap on member business loans for some credit unions.
The Senate Banking Committee hasn’t officially announced the hearing but several sources have told Credit Union Times that there will likely be one on June 16 to discuss the legislation, which is sponsored by Sen. Mark Udall (D-Colo.).
Those sources said NCUA Chairman Debbie Matz has been asked to testify at the hearing, though the agency declined comment, saying any announcement would come from the committee.
Under the bill, eligible credit unions will be able to increase their small business lending to 27.5% of total assets, at a rate of growth not to exceed 30% a year. Credit unions must be well-capitalized, be at or above 80% of the current cap, have five or more years of member business lending experience and be able to demonstrate sound underwriting and servicing.
If a credit union’s net worth ratio falls below the well-capitalized requirement (currently 7%), it would have to stop making new business loans.
Udall’s legislation has 18 cosponsors, most recently Senate Majority Leader Harry Reid (D-Nev.), who signed on Monday.
A companion bill has been introduced in the House by Rep. Ed Royce (R-Calif.).
The NCUA Board meeting is now scheduled to be held at 10 a.m. on Friday, June 17.