Washington, D.C. – Senator Edward J. Markey joined U.S. Senators Ron Wyden, D-Ore., and Lisa Murkowski, R-Alaska, today introduced bipartisan legislation to boost local economies and businesses by providing small business owners better access to financial capital through credit unions.

The Credit Union Residential Loan Parity Act, S.836, would spur business and job growth in local communities by ensuring that small housing project loans do not count toward the business lending cap for credit unions. Removing these loans from the business lending cap would free up capital at credit unions, giving local credit unions more flexibility to lend to small businesses.

Specifically, the bill would exempt loans for one- to four-unit non-owner occupied dwellings from the member business lending cap of 12.5 percent imposed on credit unions. The legislation would allow credit unions to treat loans that qualify for the exemption as residential loans with lower interest rates—similar to how banks make those loans to small businesses.

“Senators Wyden and Murkowski understand that small businesses are the engine of this economy 

Sens. Elizabeth Warren, D-Mass. also cosponsored the legislation.

In addition to the Northwest Credit Union Association, the bill is supported by the Credit Union National Association and the National Association of Federally-Insured Credit Unions.

Similar legislation has been introduced in the House of Representatives by Rep. Ed Royce, R-Calif.

Find the bill text here.