SALT LAKE CITY — Relief is on the way for Utah credit unions in making business loans with a compromise bill hammered out between the Utah League of Credit Unions and the Utah Bankers Association ready for the signature of Gov. John Huntsman Jr.
The bill, lifting the $250,000 limit and eliminating a six month wait for new members to apply for loans, passed the Utah House 69-0 on Tuesday.
Underscoring weariness with the bank/CU battle, one provision in the bill stipulates the measure will be the last legislative action for five years, under an agreement among banks, CUs and lawmakers.
“We haven't had the rancor and the problems we've had in the past,” House sponsor Kevin Garn, R-Layton and member of a prominent Utah banking family told the Salt Lake Tribune.
As adopted with several provisions effective May 5, the bill would increase the amount a credit union can offer for a business loan from the current $250,000 on an index keyed yearly to inflation. It would also increase personal loans from the current 1% to 4% of a member's savings plus earned income.
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