ICBA urged the Small Business Administration to terminate its recent memorandum of understanding with the National Credit Union Administration.
In a letter to Acting Administrator Chris Pilkerton, ICBA said credit union participation in SBA programs violates the spirt of the Small Business Act, which encourages private enterprise and free competition, and prevents doubling-up on tax subsidies.
“If, indeed, the ‘essence of the American economic system of private enterprise is free competition’ then SBA should no longer encourage and enable credit unions to participate in SBA loan programs; credit unions do not exhibit the traits of ‘free competition’ that underlie the Act,” ICBA wrote.
ICBA has repeatedly challenged NCUA efforts to allow credit unions to exceed limitations on commercial lending activity established by Congress.
Read ICBA Letter