The major Senate and House sponsors of legislation to raise the cap on member business lending are scheduled to appear at CUNA’s Governmental Affairs Conference.
Sen. Mark Udall (D-Colo.), Rep. Ed Royce (R-Calif.) and Rep. Carolyn McCarthy (D-N.Y.) will discuss their legislation and other issues of importance to credit unions at the March 18-22 conference in Washington, D.C.
The legislation, which would raise the cap from 12.25% of assets to 27.5% of assets, has 111 cosponsors in the 435-member House and 21 cosponsors in the 100-member Senate.
There have been hearings on the legislation in both chambers and while some members expressed support, others said they weren’t convinced that there was unmet demand for business loans. NCUA Chairman Debbie Matz endorsed the legislation at both hearings.
Both measures require that 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.
Other speakers at the GAC include Rep. Barney Frank (D-Mass.), the top Democrat on the House Financial Services Committee, former Secretary of State Condoleezza Rice and journalists Bob Woodward and Carl Bernstein.
Registration and hotel information about the conference is available online.