Proposed bill would exempt loans to vets from MBL cap

Reps. Vicente Gonzalez (D-Texas), Tulsi Gabbard (D-Hawaii), Paul Cook (R-Calif.) and Don Young (R-Alaska) introduced a bill yesterday in the U.S. House that would exempt loans made to veterans from counting against a credit union’s member business lending (MBL) cap.  

The bill would officially exclude extensions of credit made to veterans from the definition of a member business loan. Cornerstone Credit Union League and Credit Union National Association support the bill, as it would provide credit unions the opportunity to provide more help to veterans for their small business needs. 

"Credit unions have a long and laudable history of serving active duty and veteran members, as well as small businesses," said Cornerstone Chief Government Relations Officer Jim Phelps. "This bill will enable members to get access to capital that will empower them to invest in their own businesses and secure the future of their families. We appreciate lawmakers' leadership and support, particularly Texas' Rep. Gonzalez." 

The MBL cap is set at 12.25 percent of a credit union’s assets, or 1.75 times the credit union’s net worth, whichever is lesser. Cornerstone and CUNA support legislation to increase the MBL cap. CUNA sent a letter for the record to the bill cosponsors. Read the letter in full here.