SALT LAKE CITY — A compromise deal appeared to be in the works Thursday between credit unions and banks to pass a bill giving limited relief to CUs in making business loans and putting to rest a suggested "financial freedom referendum" this fall, an idea floated by the Utah League of Credit Unions.
Officials of both the Utah League and the Utah Bankers Association said details are being worked out with the Utah House and Senate leadership to pass a bill giving state-chartered CUs power to make loans up to 4% of total assets, up from a restrictive 1% limit imposed years ago.
Also, business borrowers would no longer be required to be members of the CU for six months and the $250,000 limit on business loans would be indexed to increase with inflation
Recommended For You
Small CUs had complained they were being effectively barred from making legitimate loans including certain car loans. The Utah League had warned that it was prepared to bring the issue before the public in a November referendum unless there was relief.
Scott Simpson, president/CEO of the Utah League said he was hopeful the compromise would go through adding, "we're pretty near our original objectives."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
