Credit unions urge caution as CFPB examines small biz lending

first_img continue reading » 9SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr The credit union perspective was highlighted during the Consumer Financial Protection Bureau’s (CFPB) field hearing Wednesday on small business lending. Sharon Lindeman, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues, asked the bureau to proceed with caution when it comes to drafting a definition for small businesses and small business loans, and to limit data collection to the elements specifically required by the Dodd-Frank Act.“Since the great recession, credit unions have actually seen growth in small business lending. Many consumers turned to their credit union for their small business loan needs after they experienced difficulty obtaining loans from larger institutions,” Lindeman said. “Credit unions provide needed capital to existing small business as well as startups.”NCUA excludes member business loans from the statutory cap when the loan balance is equal to or less than $50,000, and Lindeman said the bureau should also exempt those same loans from any small business lending rulemakings.“The leagues urge the bureau to narrowly define a small business loan, and not create a conflicting definition that would result in an administrative nightmare for credit unions,” she said.last_img

Leave a Reply

Your email address will not be published. Required fields are marked *