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Supplemental Capital for Credit Unions

Credit unions are again pushing the boundary of the nonprofit, tax-subsidized credit union business model to unfairly compete with banks with the introduction of the Capital Access for Small Businesses and Jobs Act (H.R. 719) by Reps. Peter King (R-NY) and Brad Sherman (D-CA). H.R. 719 directly undermines the basis of the credit union tax-exemption by allowing a credit union to issue equity, turning them into, in part, investor-owned corporations with an obligation to assure shareholder profit — except that they will still not pay taxes.

Raising supplemental capital allows credit unions to expand like any for-profit entity. But they are not the same as any for-profit entity, a distinction that is codified in federal law. Combined with their continued push for greater member business lending authorization, investor capital will give multi-billion-dollar, tax-exempt credit unions the opportunity to stray further into riskier commercial lending ventures – something never intended when they were given tax-exempt status. ICBA categorically opposes this legislation. Make sure that your lawmakers are aware that the community banks in their districts and states vehemently oppose this legislation.

Contact Congress Now

Supplemental Capital for Credit Unions Resources


Brian R. Anderson
Director, Congressional Advocacy
Independent Community Bankers
of America
1615 L St, NW
Washington, DC 20036
Phone: (800) 422-8439
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