Rep.Carolyn Maloney (D-N.Y.), a senior member of the HouseFinancial Services Committee, announced at this week's credit union regulatory burden hearing she plans to introduce abill that would exempt loans from the credit union member businesslending cap that are made after federally declared naturaldisasters.
|In a release, the congresswoman said the move would injectmuch-needed funds into local communities when they need itmost.
|“We all know Superstorm Sandy caused enormous destructionthroughout the Northeast, and wildfires, hurricanes and tornadoshave wreaked similar havoc across the country,” Maloney said afterthe hearing on Wednesday.
|“Federal disaster assistance that flows after each declarationof a disaster is essential but not sufficient to get a region backon its feet. I've heard from many small businesses about theirstruggle to recover from Sandy,” Maloney said.
|The bill would exempt member business loans from the 12.25% ofassets cap for a period of up to five years after a naturaldisaster declaration.
|“Exempting these loans will open up a new source of credit forstruggling small businesses and untie the hands of credit unionsthat want to provide that assistance,” she said.
|“Credit unions are key members of the communities they serve andwant to be there for small businesses who need assistancerecovering from natural disasters. This bill will providebusinesses a source of capital to help them rebuild and recover,”the New York Democrat said.
A bill to raise the MBL cap for allcredit unions has been introduced again in the House this session. No companion billhas been introduced in the Senate after the measure died last yearwithout a vote.Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
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