I 
113TH CONGRESS 
1ST SESSION 
H. R. 688 
To amend the Federal Credit Union Act to provide certain credit unions 
with the authority to make additional member business loans, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 14, 2013 
Mr. ROYCE (for himself, Mrs. MCCARTHY of New York, Mr. BISHOP of Geor-
gia, Mr. BLUMENAUER, Ms. BONAMICI, Mr. CALVERT, Mr. CHABOT, Mr. 
CICILLINE, Mr. COBLE, Mr. CONNOLLY, Mr. COOK, Ms. HAHN, Mr. 
HECK of Nevada, Mr. HUFFMAN, Mr. JOHNSON of Georgia, Mr. JONES, 
Mr. LARSON of Connecticut, Mr. LEWIS, Mr. MCCLINTOCK, Mr. MEEKS, 
Mr. MICHAUD, Mrs. NAPOLITANO, Ms. NORTON, Mr. PETERS of Michi-
gan, Ms. PINGREE of Maine, Mr. POE of Texas, Mr. POSEY, Ms. ROY-
BAL-ALLARD, Mr. SCHIFF, Mr. SCHRADER, Mr. SHERMAN, Mr. STIVERS, 
Mr. THOMPSON of California, Mr. UPTON, Ms. WATERS, Mr. YARMUTH, 
Mr. BISHOP of New York, and Mr. YOUNG of Alaska) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To amend the Federal Credit Union Act to provide certain 
credit unions with the authority to make additional mem-
ber business loans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Credit Union Small 
Business Jobs Creation Act’’. 
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SEC. 2. LIMITS ON MEMBER BUSINESS LOANS. 
(a) REVISED LIMITATION AND CRITERIA.—Effective 
6 months after the date of enactment of this Act, section 
107A(a) of the Federal Credit Union Act (12 U.S.C. 
1757a(a)) is amended to read as follows: 
‘‘(a) LIMITATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), an insured credit union may not make 
any member business loan that would result in the 
total amount of such loans outstanding at that cred-
it union at any one time to be equal to more than 
the lesser of— 
‘‘(A) 1.75 times the actual net worth of 
the credit union; or 
‘‘(B) 12.25 percent of the total assets of 
the credit union. 
‘‘(2) ADDITIONAL
AUTHORITY.—The Board 
may approve an application by an insured credit 
union upon a finding that the credit union meets the 
criteria under this paragraph to make 1 or more 
member business loans that would result in a total 
amount of such loans outstanding at any one time 
of not more than 27.5 percent of the total assets of 
the credit union, if the credit union— 
‘‘(A) had member business loans out-
standing at the end of each of the 4 consecutive 
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(1) TIERED APPROVAL PROCESS.—The Board 
shall develop a tiered approval process, under which 
an insured credit union gradually increases the 
amount of member business lending in a manner 
that is consistent with safe and sound operations, 
subject to the limits established under section 
107A(a)(2) of the Federal Credit Union Act (as 
amended by this Act). The rate of increase under 
the process established under this paragraph may 
not exceed 30 percent per year. 
(2) RULEMAKING REQUIRED.—The Board shall 
issue proposed rules, not later than 6 months after 
the date of enactment of this Act, to establish the 
tiered approval process required under paragraph 
(1). The tiered approval process shall establish 
standards designed to ensure that the new business 
lending capacity authorized under the amendment 
made by subsection (a) is being used only by insured 
credit unions that are well managed and well capital-
ized, as required by the amendments made under 
subsection (a) and as defined by the rules issued by 
the Board under this paragraph. 
(3) CONSIDERATIONS.—In issuing rules re-
quired under this subsection, the Board shall con-
sider— 
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(A) the experience level of the institutions, 
including a demonstrated history of sound 
member business lending; 
(B) the criteria under section 107A(a)(2) 
of the Federal Credit Union Act, as amended 
by this Act; and 
(C) such other factors as the Board deter-
mines necessary or appropriate. 
(c) REPORTS TO CONGRESS ON MEMBER BUSINESS 
LENDING.— 
(1) REPORT OF THE BOARD.— 
(A) IN GENERAL.—Not later than 3 years 
after the date of enactment of this Act, the 
Board shall submit a report to Congress on 
member business lending by insured credit 
unions. 
(B) REPORT.—The report required under 
subparagraph (A) shall include— 
(i) the types and asset size of insured 
credit unions making member business 
loans and the member business loan limita-
tions applicable to the insured credit 
unions; 
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(ii) the overall amount and average 
size of member business loans by each in-
sured credit union; 
(iii) the ratio of member business 
loans by insured credit unions to total as-
sets and net worth; 
(iv) the performance of the member 
business loans, including delinquencies and 
net charge-offs; 
(v) the effect of this section on the 
number of insured credit unions engaged 
in member business lending, any change in 
the amount of member business lending, 
and the extent to which any increase is at-
tributed to the change in the limitation in 
section 107A(a) of the Federal Credit 
Union Act, as amended by this Act; 
(vi) the number, types, and asset size 
of insured credit unions that were denied 
or approved by the Board for increased 
member business loans under section 
107A(a)(2), as amended by this Act, in-
cluding denials and approvals under the 
tiered approval process; 
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(vii) the types and sizes of businesses 
that receive member business loans, the 
duration of the credit union membership of 
the businesses at the time of the loan, the 
types of collateral used to secure member 
business loans, and the income level of 
members receiving member business loans; 
and 
(viii) the effect of any increases in 
member business loans on the risk to the 
National Credit Union Share Insurance 
Fund and the assessments on insured 
credit unions. 
(2) GAO STUDY AND REPORT.— 
(A) STUDY.—The Comptroller General of 
the United States shall conduct a study on the 
status of member business lending by insured 
credit unions, including— 
(i) trends in such lending; 
(ii) types and amounts of member 
business loans; 
(iii) the effectiveness of this section in 
enhancing small business lending; 
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(iv) recommendations for legislative 
action, if any, with respect to such lending; 
and 
(v) any other information that the 
Comptroller General considers relevant 
with respect to such lending. 
(B) REPORT.—Not later than 3 years after 
the date of enactment of this Act, the Comp-
troller General shall submit a report to Con-
gress on the study required by subparagraph 
(A). 
(d) DEFINITIONS.—In this section— 
(1) the term ‘‘Board’’ means the National 
Credit Union Administration Board; 
(2) the term ‘‘insured credit union’’ has the 
meaning given that term in section 101 of the Fed-
eral Credit Union Act (12 U.S.C. 1752); 
(3) the term ‘‘member business loan’’ has the 
meaning given that term in section 107A(c)(1) of 
the 
Federal 
Credit 
Union 
Act 
(12 
U.S.C. 
1757a(c)(1)); 
(4) the term ‘‘net worth’’ has the meaning 
given that term in section 107A(c)(2) of the Federal 
Credit Union Act (12 U.S.C. 1757a(c)(2)); and 
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(5) the term ‘‘well capitalized’’ has the meaning 
given that term in section 216(c)(1)(A) of the Fed-
eral Credit Union Act (12 U.S.C. 1709d(c)(1)(A)). 
Æ 
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