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Consumers in the Tallahassee area read about the struggle that credit unions often have when making member business loans (MBL). The Tallahassee Democrat ran a story on Monday that showed how the arbitrary 12.25 percent MBL cap for credit unions and NCUA regulations are stifling lending to small businesses. The story highlighted a local small business that has had trouble gaining access to credit.
First Commerce Credit Union SVP and Chief Sales Officer Carla De Baldo put it best, “I’ve had to turn people away because of the regulation. To me, one time is too many. Someone should never be turned away because of a regulation.”
Tallahassee-Leon Federal Credit Union VP of Sales and Service Mike Akers talked about why his credit union doesn’t even do MBLs. “Even if we have the desire to do more and the person is well-qualified, we’re unable to lend to that person because of an arbitrary cap,” said Akers.
The League’s SVP of Association Services Jared Ross was able to provide the background to the story and why the NCUA’s proposed rule will help credit unions. He also provided more context to the bankers argument that credit unions providing MBLs is not fair. “Credit unions support this because it allows us to do more for our members and our communities. Credit unions just want to be able to serve their membership,” said Ross.
Read the full story on the Tallahassee Democrat website.
