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NAFCU Vice President of Legislative Affairs Brad Thaler wrote to House Small Business Committee Chairman Roger Williams, R-Texas, and Ranking Member Nydia Velázquez, D-N.Y., ahead of today’s hearing on ways to support entrepreneurs through public and private resources.

Focusing on the need to increase access to capital for small businesses and entrepreneurs, in the letter Thaler reinforced the association’s support for the Member Business Loan Expansion Act, which would make it easier for credit unions to offer smaller business loans under $100,000 by ensuring they do not count toward the arbitrary credit union member business lending (MBL) cap.

While the legislation has yet to be introduced this Congress, Thaler noted, “By raising the definition of an MBL to exclude net aggregate loans less than $100,000, we would quickly see increased loan availability, reduced burdens on borrowers, and it would make it easier for federal credit unions (FCUs) to make these loans. This would benefit the communities credit unions serve as well as the U.S. economy as a whole.”

Thaler also encouraged committee members to support House introduction of the Veterans Member Business Loan Act, which has been introduced in the Senate by Sens. Dan Sullivan, R-Alaska, and Mazie Hirono, D-Hawaii, to exempt loans made to veterans from the MBL cap. “After great personal sacrifice, these Americans deserve every opportunity for success in their transition back to civilian life,” emphasized Thaler. “One way Congress can help is to support legislation that would provide relief to barriers that stand in the way of veterans accessing credit for small businesses.”

NAFCU will continue to advocate for a healthy regulatory environment that neither stifles innovation nor discourages credit unions from providing consumers and small businesses with access to credit. The legislation highlighted in Thaler’s letter will enable credit unions to provide more consumers and small businesses with access to credit and strengthen the American economy overall. Stay tuned to NAFCU Today for updates on this and other key pieces of credit union legislation.