WASHINGTON–The House Committee on Financial Services has released the Main Street Capital Access Act, a banking package that credit union trade groups said comes up short when it comes to CUs.
In releasing the bill, Republican members of the committee called it a community banking package that will “revitalize local bank formation and ensure that community lenders can focus on serving families, small businesses, and local economies, making life more affordable for Americans and empowering Main Street.”
“As a former community banker, I know and have seen firsthand the important role they serve to drive the economic engine of America and help Main Street grow and thrive,” said Chairman French Hill (R-AK) in a statement. “Over the past year, the Subcommittee on Financial Institutions under Chair (Andy) Barr’s (R-KY) leadership has worked tirelessly to examine outdated regulations, listen directly to small businesses, and confront barriers to access capital for small and mid-sized banks. I am proud to introduce the Main Street Capital Access Act with Chair Barr to reinvigorate our community banks and return commonsense back to Main Street.”
CU Trade Groups Respond
The credit union trade groups want to see CU interests better represented in the legislation.
“We appreciate Chairman Hill and Subcommittee Chairman Barr’s focus on supporting community-based financial institutions and improving access to capital on Main Street,” America’s Credit Unions CEO Scott Simpson said in a statement “Efforts to modernize outdated regulations are an important part of strengthening local economies. While the package includes provisions that could benefit the broader financial system, it leaves room for key credit union priorities to be addressed. Credit unions serve more than 145 million Americans, and any comprehensive community finance package should reflect the full range of lenders serving local communities. We look forward to continuing to work with the Committee to ensure reforms are inclusive and recognize the credit union difference.”
Added Jason Stverak, chief advocacy officer with the Defense CU Council in a statement, “We support the goal of strengthening community financial institutions and appreciate Chairman Hill’s focus on policies that help locally focused lenders serve families, small businesses, and local economies. Community finance is essential to Main Street, and that ecosystem includes both banks and credit unions.
“However, credit unions must be explicitly included and supported—not excluded. Credit unions serve more than 144 million Americans through a not-for-profit, member-owned model that exists solely to serve people and communities,” Stverak continued. “That mission was on full display during recent federal government shutdowns. When paychecks stopped, credit unions across the country stepped in immediately with emergency and zero-interest loans, fee waivers, payment deferrals, and one-on-one financial counseling for federal employees, service members, veterans, and their families. In many cases, credit unions were the first—and sometimes the only—financial institutions providing relief.
‘Real-World Performance’
“That real-world performance is exactly why credit unions must be part of any serious effort to strengthen community financial institutions. If policymakers want resilient local finance, consumer stability during disruptions, and institutions that act as financial first responders in times of crisis, credit unions are not optional—they are essential. Supporting community finance means recognizing and supporting credit unions by design, not by omission,” Stverak concluded.
Click here for the text of the bill.
