I 
112TH CONGRESS 
1ST SESSION H. R. 1418 
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 
APRIL 7, 2011 
Mr. ROYCE (for himself, Mrs. MCCARTHY of New York, Mr. JOHNSON of 
Georgia, Mr. PETERS, and Mr. CARNAHAN) introduced the following 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 ‘‘Small Business Lend-
ing Enhancement Act of 2011’’. 
SEC. 2. LIMITS ON MEMBER BUSINESS LOANS. 
(a) IN GENERAL.— 
(1) REVISED LIMITATION AND CRITERIA.—Ef-
fective 6 months after the date of enactment of this 
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Act, section 107A(a) of the Federal Credit Union 
Act (12 U.S.C. 1757a(a)) is amended to read as fol-
lows: 
‘‘(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 
quarters immediately preceding the date of the 
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application, in a total amount of not less than 
80 percent of the applicable limitation under 
paragraph (1); 
‘‘(B) is well capitalized, as defined in sec-
tion 216(c)(1)(A); 
‘‘(C) can demonstrate at least 5 years of 
experience of sound underwriting and servicing 
of member business loans; 
‘‘(D) has the requisite policies and experi-
ence in managing member business loans; and 
‘‘(E) has satisfied other standards that the 
Board determines are necessary to maintain the 
safety and soundness of the insured credit 
union. 
‘‘(3) EFFECT OF NOT BEING WELL CAPITAL-
IZED.—An insured credit union that has made mem-
ber business loans under an authorization under 
paragraph (2) and that is not, as of its most recent 
quarterly call report, well capitalized, may not make 
any member business loans, until such time as the 
credit union becomes well capitalized, as reflected in 
a subsequent quarterly call report, and obtains the 
approval of the Board.’’. 
(b) IMPLEMENTATION.— 
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