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A bipartisan group of representatives Wednesday announced, in a letter to colleagues, a bill that would provide a three-year exemption from the credit union member business lending (MBL) cap for loans made to small businesses as they recover from coronavirus national emergency.

"We thank Representatives Brad Sherman (D-Calif.), Suzanne Bonamici (D-Ore.), Don Young (R-Alaska), and Brian Fitzpatrick (R-Pa.) for working with NAFCU and standing with credit unions that are looking to help small businesses and local communities overcome the financial impact of the coronavirus," said NAFCU President and CEO Dan Berger. "This legislation will go a long way toward ensuring more loans and capital reach those in need, and NAFCU stands to advocate for its passage during these uncertain economic times."

The bill would exclude any MBLs that are extended within the three-year period beginning March 13, 2020, of which the proceeds are used to aid in the recovery from coronavirus pandemic. It would require the NCUA to issue implementing regulations that ensure a credit union’s safety and soundness is not impacted by the loans.

NAFCU has long sought relief for credit unions from the arbitrary MBL cap and, amid the coronavirus pandemic, has urged Congress to amend the Federal Credit Union Act to provide credit unions with greater flexibility and relief from the MBL cap so they can increase access to lending to the nation's small businesses that are in need.

NAFCU will keep credit unions updated on the bill's status, including when it is officially introduced, and continue to advocate to Congress ways in which it could provide support and relief to credit unions during the pandemic.