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NCUA: Member SBA Business Loans

ABA Contact: Keith Leggett, 202-663-5506
Published: 69 Federal Register 39873, July 1, 2004
Comments Due: August 30, 2004
Disposition: Filed, August 2, 2004

The proposed rule would enable credit unions to participate more fully in the SBA guaranteed loan programs. At the present time, Federal credit unions can make SBA loans if consistent with NCUA's member business loan regulations. The proposal exempts SBA loans made by Federal credit unions from NCUA's collateral requirements.

In its comment letter, the ABA urged NCUA to retract the proposal. It is counter to Congressional intent and evades the purpose of the statute. It would divert more credit unions resources to financing commercial enterprises.

2004 Regulations Chart
Federal Register
Comment Letter