Senators Rand Paul (R-Ky.), Sheldon Whitehouse (D-R.I.), and Jack Reed (D-R.I.) introduced legislation Thursday that would raise the member business lending cap. The bill, which is similar to legislation introduced by former Sen. Mark Udall (D-Colo.), would increase the MBL cap to 27.5 percent of assets from the current cap of 12.25 percent.
Representatives Ed Royce (R-Calif.) and Greg Meeks (D-N.Y.) introduced a bill in the House earlier this year that would also raise the MBL cap.
It is unclear how the NCUA’s proposed MBL rule would affect the bill. If finalized as currently written, the NCUA’s MBL reform would replace the regulatory cap calculation currently based on a percentage of assets with a percentage of net worth.