Friday, April 6, 2012

SELCO Community and the Exception to the Business Loan Cap

The March 28, 2012 issue of Credit Union Times had a story about how SELCO Community Credit Union (Eugene, OR) had to turn away business customers because of the current member business lending limit of 12.25 percent of assets.

I did some research and discovered that SELCO Community has a low-income designation.

Credit unions that have a low-income designation have an exception to the aggregate member business loan cap.

To obtain the exception, SELCO Community must submit documentation to its state supervisor that it is a low-income credit union. The state supervisor will forward its decision to NCUA. Once granted an exception, it does not expire unless revoked by the state supervisory authority.

The missing detail from the story is whether SELCO Community submitted documentation to its state regulator requesting an exception.

If it had not, SELCO Community only has itself to blame for turning away business owners.


  1. "Only itself to blame"? No, blame for recent cap on business lending is with ABA, according to the self-ascribed credit your association claims with its members. And the millions of dollars in lobbying since, in multiple efforts to try to protect and maintain a government granted near-monopoly. Your salary, Mr. Leggett, is part of those costs. Enjoy the controversy; it enriches you.

    1. If they did not apply for an exception then perhaps Mr. Leggett has a legitimate point. It sounds like you are bitter and bending the conversation to something other than answering Mr. Leggett's question about who is to blame. Let's be fair now.

  2. Keith....NCUA is going to have a GSA situation on their hands. I hear they are having a two week conference in Orlando next week for staff. Receptions, paid consultants, the money they are spending from credit unions pockets should be investigated.

  3. Please remember that a state definition of low-income and the NCUA's may not line up exactly thus meeting NCUA's requirements may not be possible. It is that way in California.

  4. Hey Keith, when did credit unions become the big "evil empire?" I think you're worried because they make you look bad.
    95% of a market isn't enough for the banks that caused the largest unemployment in this nation since the great depression.
    It wasn't the Republicans or the Democrats, it was the banks. How do you sleep at night?



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