CUNA Uses Coronavirus to Push Legislative Priorities

Rahm Emanuel is quoted as saying "You never want a serious crisis to go to waste."

It appears that the Credit Union National Association (CUNA) has taken his quote to heart.

The credit union trade group is using the coronavirus to push their agenda to increase the ability of credit unions to make business loans and gain access to secondary capital.

In a March 19 letter to Congress, CUNA urged Congress to:

• Enact legislation exempting credit union business loans made during federally declared disasters and emergencies from the Credit Union Member Business Lending Cap;
• Enact legislation to exempt fully government-guaranteed loans made through programs at the Small Business Administration, Department of Agriculture and other agencies from the Credit Union Member Business Lending Cap; and
• Ensure that any new small business lending programs created through the Small Business Administration or other government agencies include an opportunity for credit unions to participate.

In addition, CUNA called on Congress to pass legislation giving all credit union access to secondary capital for the purpose of prompt corrective action during this national emergency. Currently, only low-income credit unions have the authority to access secondary capital. All other credit unions can only build capital through retained earnings.

Read the letter.