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Two NAFCU-sought bills that would provide flexibility under the member business lending cap (MBL) and expand Federal Home Loan Bank (FHLB) membership were introduced Tuesday by Reps. Vicente Gonzalez, D-Texas, and Brian Fitzpatrick, R-Pa.

The Member Business Loan Expansion Act would allow the NCUA the flexibility to provide credit unions with relief from the 15-year general loan maturity limit under the Federal Credit Union (FCU) Act and raise the de minimis value of what counts toward the MBL cap from $50,000 to $100,000.

In addition, the bill would amend the definition of "community financial institution" under the FHLB Act to include credit unions.

“NAFCU applauds Representatives Gonzalez and Fitzpatrick for continuing to recognize the important role credit unions play for their members and in helping small businesses thrive – many of which are minority-owned or in communities that have been left behind by banks,” said NAFCU President and CEO Dan Berger. “Main Street small businesses rely on their local credit unions for safe, secure, and reliable loans and this bill will help communities flourish. We support and urge its passage."

The Veterans Member Business Loan Act would exclude from credit unions’ MBL cap any business loan made to veterans.

“The Veterans Member Business Loan Act will bring economic opportunity to more veterans by removing barriers that hinder credit unions’ ability to meet their needs,” Berger said. “We thank Representatives Gonzalez and Fitzpatrick for their leadership on this issue and look forward to working with them to get this bill passed.”

NAFCU has consistently advocated for reforms to the arbitrary and outdated MBL restrictions, and for increased access to capital for veterans and other small business owners. The association will continue to urge lawmakers to support these important reforms.