The Cooperative Credit Union Association is speaking up on the industry regulator’s recent member business lending proposal.

The association said it aims to cover a range of topics, including expressing support for the distinction between “commercial loans” for purposes of safety and soundness and “MBLs” for purposes of the cap, as well as support for the requirement of a commercial loan policy. The National Credit Union Administration (NCUA) is accepting comments on the proposal until Aug. 31.

“NCUA has provided an excellent opportunity for credit unions to further engage its membership with Member Business Loans, which are vital to fueling the economy. Credit unions must take the time to comment if this issue is important to them. The bankers have already flooded NCUA with hundreds of comments opposing much of what is in the rule. We must balance their off-base comments with sound, substantive comments on how the proposed rule would impact MBL operations at credit unions,” Paul Gentile, association president, said in a statement.

The NCUA’s proposal will exempt credit unions with $250 million or less in assets, and commercial loans less than 15 percent net worth, which are not regularly originating and selling or participating out commercial loans, from the commercial loan policy and board of directors and management requirements. Additionally, the NCUA intends to solicit comments on the elimination of waivers, a discussion on small credit union exemption and upcoming supervisory guidance.

The NCUA has suggested that this proposal shifts the agency’s approach from prescriptive rules to a more flexible approach.

The Credit Union National Association filed its comment letter with the agency this week, and has provided a summary of their comments, which can be read HERE. The full comment letter can be read HERE. The full proposal may be read here.