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Federal Legislative and Regulatory Issues
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Credit Union Lending Limits There's an ongoing
effort by credit unions to legislate an increase in the credit union
business lending cap from 12.25 percent of a credit union's total assets
to 25 percent. The closest an individual non-exempt Georgia credit union
comes to this cap is 8.42 percent. Raising the business-lending cap
would primarily help large, nontraditional, growth-oriented credit
unions that have abandoned their mission of serving people of modest
means, and it would substantially increase such credit unions' risk
exposure. The current legislation pending is S. 509 (Udall, D-CO)
and H.R. 1418 (Royce, R-CA), The Small Business Lending
Enhancement Act of 2011, a misleading title. We understand that Georgia
credit unions are leaning heavily on our congressional delegation on
this issue and both Cong. Hank Johnson and Cong. Sanford Bishop of
Georgia have cosponsored the House bill. We oppose any legislation to
increase the credit union business lending cap. |
GBA's professional staff represents the membership at the both the state and federal levels. Contact any of them with questions about issues:
Joe Brannen |
