H.R. 1791: Increasing Credit Union Lending for Business Growth Act

This bill, titled the Increasing Credit Union Lending for Business Growth Act, focuses primarily on enhancing the lending capacities of credit unions, particularly to support small businesses. The bill proposes several key changes:

1. Increased Lending Limits for Credit Unions

The bill aims to amend the Federal Credit Union Act to increase the maximum amount that credit unions can lend to small businesses. Specifically, it proposes to raise the limit from $50,000 to $100,000. This change is designed to provide more financial flexibility and support for small businesses seeking loans from credit unions.

2. Objectives of the Bill

The primary objective of this legislation is to empower credit unions to facilitate greater access to capital for small businesses. By raising the loan limit, the bill seeks to:

• Encourage small business growth through increased funding opportunities.
• Support economic development by fostering a more favorable lending environment.
• Enhance the ability of credit unions to compete with other financial institutions regarding business loans.

3. Related Amendments

In addition to increasing lending limits, the bill is broader in scope and also mentions amendments to the Federal Home Loan Bank Act to enhance access to homeownership. Although the specifics of these amendments are not detailed in the text, they imply a focus on expanding financial options to consumers in the housing market.

4. Committee Referral

After its introduction, the bill was referred to the Committee on Financial Services for further consideration, where it will be reviewed and discussed before any potential voting or amendments take place.

Relevant Companies

• CFG: Citizens Financial Group, as a bank holding company, could see shifts in competitive dynamics regarding small business lending if credit unions gain a more substantial role due to this bill.
• KEY: KeyCorp, which operates KeyBank, may face increased competition from credit unions in the small business lending market, affecting their market share and lending strategies.
• USB: U.S. Bancorp, providing a variety of banking services including loans, could also be impacted as credit unions expand their lending capabilities in the small business sector.