NCUA Proposes Removing Outdated Commercial Lending Rule
The National Credit Union Administration announced a fourteenth round of deregulation proposals, including final rules and a proposed rule.
Updated on Nov. 3, 2026 in Debt Relief
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The National Credit Union Administration announced two final rules and one proposed rule as part of its fourteenth round of deregulation proposals. The agency is seeking public comment on an interim final rule removing the outdated transitional provision at 12 CFR 723.9.
Why it matters
The Deregulation Project reviews NCUA regulations with a focus on credit unions' safety, soundness, and resilience, and the proposals aim to eliminate obsolete rules that the Board says are no longer necessary. Stakeholders across the country, including credit unions and their members, can weigh in on the changes.
The NCUA Board is seeking comments on an interim final rule removing 12 CFR 723.9, an outdated transitional provision from the 2016 commercial lending rule. Also in this round, the Board made permanent the regulatory treatment of Paycheck Protection Program loans in effect since April 27, 2020.
The players
National Credit Union Administration (NCUA)
The federal agency that regulates and supervises federally insured credit unions across the United States, headquartered in Alexandria, Virginia.
The details
The Board adopted a final rule making permanent the regulatory treatment of PPP loans and amended 12 CFR 701.39 by removing paragraph (a)(1), which defined a phrase the Board considered unnecessary because credit unions must already identify and comply with applicable law. The changes do not affect a credit union's statutory lien authority or existing legal obligations.
Timeline
• April 27, 2020: Regulatory treatment of PPP loans began, later made permanent by the Board.
• 2016: The commercial lending rule containing 12 CFR 723.9 was adopted.
• November 3, 2026: NCUA announced its fourteenth round of deregulation proposals.
Roadmap
The removal of 12 CFR 723.9 follows the 2016 commercial lending rule that introduced it, reflecting a pattern of cleaning up transitional provisions once their purpose ends. It continues the NCUA's broader Deregulation Project, which has been reviewing regulations for years to reduce complexity for credit unions.
Credit union members with commercial or PPP-related loans may see simplified regulatory treatment as the obsolete provisions are removed. Stakeholders can submit comments through the Federal Rulemaking Portal before the comment period closes.
The takeaway
Credit union members can follow the NCUA's Deregulation Project to track rule changes that affect their accounts and loans. Commenting through the Federal Rulemaking Portal gives stakeholders a direct way to shape the final rules.
Further reading
Explore more on Debt Relief to see how credit union rule changes can affect borrowers.
More information
Detailed summaries for each proposal are available on the NCUA deregulation project page.
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