ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release August 25, 2004 #04-41
E-mail: [email protected]

ACB URGES NCUA TO WITHDRAW RULE ON SBA GUARANTEED LOANS

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WASHINGTON, D.C. — America’s Community Bankers has strongly urged the National Credit Union Administration to withdraw its proposed rule that would allow credit unions to make Small Business Administration guaranteed loans under SBA rules instead of under the NCUA’s more stringent collateral and security requirements.

In its comment letter to the NCUA, ACB stated that the proposed changes were “an affront to the intent of the Credit Union Membership Access Act (of 1998),” and that the proposed rule “blatantly ignores the statute and the intent of Congress” which specifically limited credit union business lending to 12.25 percent of assets.

ACB’s specific concern is that the proposal would further allow credit unions to make more loans that do not count toward the aggregate business loan limit and therefore would result in fewer credit union assets being devoted to consumer lending.

ACB’s broader concern is that the NCUA proposal is taking yet “another step in the elimination of restrictions placed on credit unions while they continue to maintain their tax-exempt status. This pattern of behavior must stop. The NCUA must function as a regulator, not as an industry advocate.”

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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