New York Credit Union Association President/CEO William J. Mellin sent the following letter to members of New York’s congressional delegation on Tuesday requesting support of H.R. 6550, the Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act of 2020. The bill would remove the requirement — which most credit unions are subject to — that member business loans do not exceed 12.25% of assets.
On behalf of the New York Credit Union Association, and the more than six million members served by credit unions in our state, we are reaching out to respectfully request you sign on as a cosponsor to H.R. 6550, the Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act of 2020.
H.R. 6550 would provide an exception to the member business lending (“MBL”) rule and lift the current MBL cap for those member business loans used to “aid in the recovery from the COVID-19 emergency” provided the loan is made within a three-year period starting from March 13, 2020, and the loan does not threaten the safety and soundness of the credit union.
This legislation would give credit unions the critical flexibility needed to best serve the small businesses here in New York State, and across the nation during this unprecedented time. We urge you to cosponsor H.R. 6550 as soon as possible.
Please reach out to us with any questions on the bill or credit union member business lending.