MONTVALE, N.J. — Paragon Federal Credit Union said its member business lending program is “totally maxed out” and is feeling the pains of the federal regulatory cap on such loans.

Richard Rays, president/CEO of the $391 million credit union, recently told The Record that persons seeking business loans have been turned away so that Paragon can stay under its $48 million cap. NCUA’s member business lending cap is 12.25% of a credit union’s assets. One of the provisions in the Credit Union Regulatory Improvements Act would raise the cap to 20%. For Paragon’s eight-year old business lending program that would mean it could make about another $30 million in loans to businesses, the publication reported.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.