Waukesha Times

Wisconsin State Representative Scott Fitzgerald said that the Expanding Access to Lending Options Act enables credit unions to provide "longer-term loans" to assist families and small businesses in managing rising costs and avoiding "high monthly payments."

"As the cost of living continues to rise, families and small businesses need more flexible, affordable lending options," said U.S. Rep. Scott Fitzgerald (R-Wi). "This bill gives credit unions the ability to offer longer-term loans, helping borrowers plan for the future and stay on top of their financial obligations without being locked into high monthly payments."

According to Fitzgerald, the proposed legislation seeks to amend the Federal Credit Union Act. It would grant the National Credit Union Administration (NCUA) Board the authority to increase the loan maturity cap for federal credit unions from 15 to 20 years or longer through regulation. The bill also allows for loan maturities of up to 30 years for 1–4-unit residential properties, irrespective of whether the property is a principal residence.

Current federal law generally restricts credit union loan terms to 15 years, with limited exceptions. The proposed changes address rising costs by offering more flexible repayment terms, potentially reducing monthly payments for borrowers and expanding lending options for individuals and small businesses. The bill maintains the existing 12.25% cap on credit unions’ small business lending as a percentage of total assets.

The legislation underscores that the NCUA should continue prioritizing safety and soundness in its regulatory oversight role. These proposed changes aim to equip credit unions with the ability to offer lending products with extended repayment timelines while adhering to regulatory standards.

Fitzgerald represents Wisconsin’s Fifth Congressional District in the U.S. House of Representatives. His previous roles include serving in the Wisconsin State Senate from 1995 to 2021 as both Majority Leader and Minority Leader. He graduated from Hustisford High School and earned a Bachelor of Science degree from the University of Wisconsin-Oshkosh. Additionally, Fitzgerald served in the U.S. Army Reserve for 27 years before retiring as a Lieutenant Colonel.