A coalition of conservative groups is urging the incoming Trump Administration to retain the NCUA’s Member Business Loan regulations and to support legislation to loosen business lending even more.
“As conservative, libertarian, and free-market organizations concerned about government regulatory overreach, we applaud the steps you and your transition team are taking to root out regulations that provide little value and obstruct job growth,” the groups said in a letter sent Tuesday to President-elect Trump and Vice President-elect Pence.
However, the group said that the business lending rule “advances our goals of less government and more freedom.”
The coalition consists of 14 groups and includes the National Taxpayers Union, the Competitive Enterprise Institute, the American Legislative Exchange Council and Americans for Tax Reform.
The business lending rule was enacted by the NCUA, which is an independent agency and so it remains unclear how Trump could rescind the regulation.
However, the group identifies bank lobbyists as the force behind the repeal effort. The Independent Community Bankers of America has sued the NCUA, charging that the rules the agency board adopted last year violate federal law.
NCUA officials contend that the rules allow credit unions to expand their services.
The House Freedom Caucus initially included the rule on a list of rules it wants repealed. However, the group dropped it after meeting with credit union officials.
The coalition said that banks and credit unions have an “enormous” regulatory burden because of Dodd-Frank, but added that the business loan rule relieves some of that burden.
The groups said that the rule also advances President-elect Trump’s commitment to strengthen domestic manufacturing and to help veterans, since many prominent credit unions were started by employees of manufacturing firms and serve veterans.
