Credit union advocates slipped a call to reform the cap on member business lending into congressional testimony on the Small Business Administration.
Testifying before a House Small Business subcommittee
on the fiscal 2020 SBA 7(a) budget proposal, an executive representing the National Association of Federally-Insured Credit Unions led by saying the “arbitrary” lending cap hampers small-business lending by the tax-exempt financial firms.
ICBA has repeatedly challenged National Credit Union Administration efforts to allow credit unions to exceed limitations on commercial lending activity established by Congress.
The NCUA’s inspector general recently said
the agency should improve how it monitors credit union loan concentrations following the failure of three New York credit unions that cost the Share Insurance Fund an estimated $765.5 million in losses.