On Feb. 22, 2013, National Cooperative Business Association (NCBA) President and CEO Mike Beall sent letters to Capitol Hill to leaders in the House of Representatives in support of three bills that affect credit unions and their ability to serve their members.
NCBA is the oldest and largest national membership association dedicated to ensuring that cooperative businesses, such as credit unions, have the same opportunities as other businesses operating the United States and that consumers have access to cooperatives in the marketplace.
NCBA’s support of the legislation compliments the advocacy efforts of the Credit Union National Association and the National Association of Federal Credit Unions.
Credit Union Small Business Jobs Creation Act (H.R. 688)
The Credit Union Small Business Jobs Creation Act would allow well-capitalized credit unions operating near the business lending cap to increase their business loan offerings to 27.5 percent of total assets, if they receive approval by the National Credit Union Administration.
The current cap was imposed by Congress in 1998 and limits most credit unions to lending no more than 12.25 percent of their assets to small businesses. Credit unions could lend an additional $13 billion to small businesses, helping them create over 140,000 new jobs in the first year after enactment if Congress increases the statutory cap on credit union business lending.
Capital Access for Small businesses and Jobs Act (H.R. 719)
This legislation would modify the definition of credit union net worth to include supplemental forms of capital for credit unions and allow the regulator to develop risk based capital standards for the purposes of prompt corrective action.
Eliminate Privacy Notice Confusion Act (H.R. 749)
The Eliminate Privacy Notice Confusion Act would require a privacy notification be sent to a member or customer when the policy changes, rather than every year—even when nothing may have changed.
The Eliminate Privacy Notice Confusion Act is a common sense regulatory relief measure that would make privacy notifications more meaningful for consumers. In addition, this Act will reduce the amount of diverted time and resources that a credit union’s staff could be using for more important services to its members.