ALBANY, N.Y. — A new state law will allow credit unions to participate in the Excelsior linked-deposit program.
Gov. Kathy Hochul signed the bill on Sunday.
Through the program, eligible businesses can obtain commercial loans from authorized financial institutions at significantly reduced interest rates, the Albany–based New York Credit Union Association (NYCUA) said in a Monday news release. Lenders are compensated with a deposit of state funds at comparably reduced rates.
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The New York Credit Union Association is the trade association for the state’s credit unions, which collectively hold more than $100 billion in assets and serve 6 million members.
This new state law has been a “key legislative priority” for New York’s credit unions for more than 20 years, and it will provide New York businesses with “even more options for obtaining important financial services,” NYCUA contended.
“New York credit union advocates worked assiduously and persistently on this issue over the course of more than two decades,” William Mellin, president and CEO of NYCUA, said. “Now, after years of hard lobbying and advocacy efforts, this priority legislation has been signed into law. This is a massive victory for both credit unions and New York businesses.”
The Excelsior linked-deposit program was created in 1997 to assist small- and mid-size businesses in New York with expansions, modernizations, development, and other investment projects, NYCUA noted.
“Significantly,” the new law allowing credit unions to participate in the program marks the first time New York state has been authorized to deposit public funds in credit unions.
“As we have stated for years, this new law is a ‘win-win’ for credit unions and New York businesses alike,” said Mellin. “With credit unions now eligible to participate in the Excelsior Linked Deposit Program, New York businesses seeking to expand and evolve will have more access to affordable financial solutions. Similarly, credit unions will be able to deepen their relationships with businesses in their communities and provide them with even more services.”
