In a letter to congressional leaders today, 51 state bankers associations flagged “opportunistic and unnecessary” attempts by the credit union industry to seek charter enhancements—such as expansion of the member business lending cap—during the coronavirus pandemic.
The groups noted that government guaranteed loans, including SBA Paycheck Protection Program loans, are already exempt from the business lending cap, and that an expansion at this time is unnecessary. They added that at this time, just 30 credit unions—a fraction of a percent of the credit union industry—are at risk of hitting the member business lending cap.
“We are proud of the joint work banks and credit unions have done together during this crisis, and both industries appreciate the important role we all play to keep liquidity flowing to communities,” the groups said. “However, efforts to increase credit union powers in the name of a crisis, including increases to the member business loan limit, are disappointing and distract from important policy priorities that are actually needed to support our small businesses.”
