Member Business Loan Expansion Act would raise maturity limits on loans

Legislation introduced Tuesday would raise the maturity limits on loans made by federal credit unions.

Congressman Vicente Gonzalez of Texas and Congressman Brian Fitzpatrick of Pennsylvania introduced the Member Business Loan Expansion Act, which aims to expand the lending ability of credit unions to $100,000, according to a statement from the two legislators. The current lending threshold is $50,000.

The legislation would provide credit unions with increased flexibility to encourage the growth and success of small businesses, and ensure that more credit unions can offer affordable, high-quality mortgage loans to consumers by expanding eligibility for FHLB membership.

A CUNA-backed bill, Jim Nussle, CUNA president/CEO, said that allowing credit unions to make loans with maturity limits of more than 15 years will help them provide more opportunities for members, including in the student loan space, according to the statement.

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