I 
114TH CONGRESS 
1ST SESSION H. R. 1188 
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 
MARCH 2, 2015 
Mr. ROYCE (for himself and Mr. MEEKS) 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 ‘‘Credit Union Small 
Business Jobs Creation Act’’. 
SEC. 2. LIMITS ON MEMBER BUSINESS LOANS. 
(a) REVISED LIMITATION AND CRITERIA.—Effective 
6 months after the date of enactment of this Act, section 
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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 
quarters immediately preceding the date of the 
application, in a total amount of not less than 
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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.— 
(1) TIERED APPROVAL PROCESS.—The Board 
shall develop a tiered approval process, under which 
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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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