New Bill Provides Certain Exemptions From Limit On Commercial Loans By Credit Unions | Journal of Credit Unions

Credit unions applaud bipartisan legislation introduced in the United States House of Representatives on Monday that aims to help small businesses recover faster from the economic downturn caused by the coronavirus pandemic.
The bill, sponsored by Reps Brad Sherman, D-Calif., And Brian Fitzpatrick, R-Pa., Would allow credit unions to exempt all loans made to small businesses since March 13, 2020 from the loan limit. to member companies. If passed, the National Credit Union Administration will be required to issue implementing regulations ensuring that the safety and soundness of a credit union is not affected by loans.
Patrick T. Fallon / Bloomberg
Similar legislation was introduced in the House and Senate last year, with Sherman also attaching his name to the House bill.
The National Association of Federally Insured Credit Unions said in a statement that they applaud the legislation.
“Credit unions have long sought to provide essential loans to small businesses – many of which belong to minority populations – more than their banking counterparts,” said Dan Berger, president and CEO of the National Association of Federally-Insured Credit Unions. “This bill will help ensure that credit unions are able to provide small businesses with the financing they need to keep their doors open, pay their employees and continue to provide important services in their communities.”
The Credit Union National Association also applauded the legislation. This would help ensure that “all available commercial credit is deployable during and after the pandemic so that small businesses can resume operations and Main Street communities can quickly recover,” said the president and CEO of CUNA, Jim Nussle, in a press release.