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NCUA Vice Chairman Rodney Hood Highlights the Performance of America’s Credit Unions in Helping Small Businesses Prosper

Alexandria, Va., April 19, 2006 - As part of President Bush’s National Small Business Week, National Credit Union Administration Vice Chairman Rodney E. Hood visited two Texas credit union service organizations active in helping credit unions assist small businesses. On April 12, Hood visited EECU in Fort Worth and Texans Credit Union in Richardson, the largest producer of credit union member business loans in Texas. 

At each credit union, Vice Chairman Hood received an overview of best practices for working with small business. He discussed how NCUA might facilitate communicating such practices to other credit unions as well as easing regulatory burdens currently in place. Hood told audiences at both facilities that he believes the 12.25 percent member business loan cap is an unnecessary burden on credit unions with a proven record of member business lending. 

“I want to focus on reducing the regulatory burden of member business lending in order to make it easier for more credit unions to help small businesses prosper,” said Vice Chairman Hood. “Small businesses create two-thirds of the new jobs and account for nearly half of America’s overall employment.”

Since joining the NCUA Board, Vice Chairman Hood has made regulatory flexibility and member business lending key priorities of his agenda.

 “I do not believe that well-managed, well-capitalized credit unions need to be micromanaged,” said Hood. “And I appreciate the impact that member business lending is having on local economies.”

The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 85 million account holders in all federal credit unions and the majority of state-chartered credit unions.