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The federal regulator governing credit unions is dramatically increasing the threshold for when an appraisal is required in commercial real estate loans.

The National Credit Union Administration board voted last week to raise the threshold, from $250,000 to $1 million, above which a state-certified appraiser is required to evaluate the property whose sale a credit union is financing. The rule goes into effect on Oct. 22.

Banks currently face a $500,000 threshold for when a certified appraiser is required in financing a commercial real estate transaction.

The board said it did not believe a $1 million threshold would expose the financial system to too much risk or “create an imbalance in the commercial mortgage market,” and said increased access to credit and for small businesses outweighed concerns that some small business borrowers were not sufficiently experienced in commercial real estate transactions.