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.
Meanwhile, $1.4 billion Affinity FCU said it has plenty of room to grow its business lending program since launching it about a year ago, according to the June 26 article. Its cap is $183 million, but under CURIA it would go up to roughly $300 million.
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