Credit Union Member Business Loans (CRS Report for Congress)
| Release Date |
Feb. 17, 2010 |
| Report Number |
R40793 |
| Report Type |
Report |
| Authors |
Pauline Smale, Analyst in Financial Economics |
| Source Agency |
Congressional Research Service |
Summary:
The credit union industry has long advocated for relief from statutory restrictions on businesslending activities. Credit unions can make loans only to their members, to other credit unions, andto credit union organizations. Specific restrictions on business lending include an aggregate limiton an individual credit union's net member business loan balances and on the amount that can beloaned to one member.The past two Congresses considered but did not pass legislation providing additional lendingauthority. The banking industry has generally opposed legislation that would increase the powersof credit unions. Current legislation, the Promoting Lending to America's Small Businesses Actof 2009 (H.R. 3380) and the Small Business Lending Enhancement Act of 2009 (S. 2919) wouldprovide credit unions with expanded business loan authority.Bills: H.R. 3380, S. 2919
