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Michigan Credit Union League Home » Information Services » Publications » News Articles  

Credit Unions Urged to Ask Senators for MBL Support   (Monitor: July 6, 2010)

U.S. Sen. Mark Udall has introduced an amendment to H.R. 5297, the Small Business Lending Fund Act , that would increase the credit union member business lending cap to 27.5 percent of total assets if they meet certain criteria and are approved by the NCUA. Credit unions are urged to contact Michigan's Senators as soon as possible via the CapWiz tool to request support for inclusion of this amendment.

To lend in excess of the current 12.25 percent cap, a credit union would have to be well capitalized; at or above 80 percent of the current MBL cap for one year before applying; have five or more years of MBL experience; have a history of strong MBL underwriting and servicing; and have strong management, an adequate capacity to lend and policies to manage increased MBLs. The Udall Amendment also includes provisions intended to protect the National Credit Union Share Insurance Fund, including that MBL portfolio growth cannot exceed 30 percent per year for credit unions in the higher MBL tier, and that Tier 2 credit unions must stop making business loans if they fall below 7 percent.

For credit unions participating in the Action Alert, the prewritten letter in CapWiz can be personalized. The alert is automatically set up to deliver letters via e-mail. If you do not wish to use CapWiz, send your letter to MCUL Political Affairs Coordinator Jami Meyer at, or fax to 517-482-3762 so that the number of contacts made on this issue can be tracked.

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