ENCREDIT UNIONS, COMMERCIAL LENDING & REGULATION · NOVEMBER 7, 2026
NCUA Removes Obsolete Commercial-Lending Transition Rule
An NCUA interim final rule removes an outdated transitional provision from the commercial-lending regulation while leaving current commercial-lending standards and grandfathered treatment unchanged.
What the NCUA announced
Source publication date: November 3, 2026. The National Credit Union Administration announced an interim final rule removing section 723.9, an outdated transitional provision, from its commercial-lending regulation. The rule became effective November 4, 2026. The agency said the action simplifies the regulation by deleting language that is no longer needed.
- 01Rule effective November 4
- 02Current standards are unchanged
- 03Grandfathered loans remain grandfathered
The provision came from an earlier regulatory transition
Section 723.9 was adopted to support the 2016 transition from prescriptive member-business-lending rules to a principles-based commercial-lending framework. It preserved certain loan treatment and supervisory conditions during that change. A decade later, the NCUA concluded the transitional text had served its purpose and could be removed.
Current commercial-lending standards do not change
The NCUA stated that removing the provision does not alter current commercial-lending standards. Loans previously grandfathered under the transition remain grandfathered, and supervisory actions already in place remain effective until the agency modifies or removes them. The rule is therefore a cleanup of obsolete text, not a general easing of underwriting, collateral, concentration, or risk-management expectations.
Practical borrower takeaway
Credit-union borrowers should continue preparing the amount and use of funds, current and historical financials, tax returns, debt schedule, ownership, liquidity, collateral, guarantor information, projections, and repayment support. Confirm the institution's current industry, geography, loan-size, product, concentration, pricing, covenant, and documentation requirements. Do not assume the rule removal changes eligibility, approval, proceeds, timing, or terms for a specific request.
Credit-union commercial borrowers should expect current underwriting standards to remain in place and should confirm lender appetite, eligibility, collateral, pricing, covenants, and documentation directly rather than reading the cleanup as broader credit relief.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.