Credit Unions Grandfathered from Business Loan Cap

Recently, I was asked by a reader if I knew which credit unions were grandfathered by the Credit Union Membership Access Act from the aggregate member business loan cap of 12.25 percent of assets because they had a histroy of primarily making business loans or were chartered for the purpose of making business loans.

While I have never seen an official list, the following table (click on table to enlarge) provides an unofficial list of credit unions that I believed were grandfathered. The list was constructed by looking at the financial statements of credit unions during the mid-to-late 90s.

According to NCUA's regulations, credit unions that have a history of primarily making member business loans, is defined to mean "either member business loans comprise at least 25% of the credit union’s outstanding loans (as evidenced in any call report filed between January 1995 and September 1998 or any equivalent documentation including financial statements) or member business loans comprise the largest portion of the credit union’s loan portfolio (as evidenced in any call report filed between January 1995 and September 1998 or any equivalent documentation including financial statements)."