The U.S. District Court of the Eastern District of Virginia has dismissed the suit filed by the Independent Community Bankers of America against the National Credit Union Administration over its new rule on business lending.

The ICBA in September filed suit against the NCUA over changes to its member business lending rule including the removal of loan-to-value limits on commercial loans and the elimination of requirements for credit union customers to personally guarantee small-business loans.

The court dismissed the case on procedural grounds but indicated it would also have been dismissed on its merits.

NCUA board member J. Mark McWatters called the decision a victory for small businesses throughout the country. "I supported NCUA's member business lending rule because it is legally permissible pursuant to the Federal Credit Union Act and the rendered decision today affirms that," he said in a statement.

The NCUA board in February approved the final version of the MBL rule.