HOUGHTON LAKE & KALAMAZOO, MI (January 28, 2026) |
An innovative partnership between North Central Area Credit Union and Element 22 Commercial Group (“Element 22”) is expanding commercial lending opportunities—and strengthening support for small businesses in the community.
Small businesses are the backbone of local economies. They reinvest dollars in the communities they serve, create jobs, and provide products and services rooted in our hometowns.
Yet for many credit unions, commercial lending can feel out of reach. Limited internal resources, staffing constraints, or uncertainty around underwriting and servicing often stand in the way. At the same time, shifting market conditions are creating new opportunities for credit unions in Michigan—and across the country—to step in as larger banks pull back from small business lending.
At North Central Area Credit Union, we see this moment as an opportunity to strengthen our communities through strategic partnership, and supporting small businesses aligns naturally with our mission. That’s why we’ve partnered with Element 22 to support the expansion of our commercial lending capabilities—without compromising control, compliance, or member service.
A Commercial Loan Department—Without the Overhead
Element 22 functions as a commercial loan department for credit unions and community banks that may not have the internal volume or in-house expertise to manage business lending independently. “It allows us to do more with their expertise,” says Philip Jacques, Chief Lending Officer at North Central Area Credit Union. “Their team assists with underwriting, loan presentation preparation, collateral analysis, risk rating, and post-closing servicing—including billing, payments, financial reviews, and collateral verification.”
Rather than operating separately, Element 22 integrates into the credit union’s existing processes, providing support and recommendations while leaving all final lending decisions with the credit union.
For NCACU, this approach allows us to offer business lending in a way that aligns with our standards, policies, and member-first philosophy.
Expanding Capacity Through Participation Lending
Even with the right expertise and processes in place, some business loans naturally exceed a single credit union’s lending limits or risk thresholds. Participation lending offers a practical way to meet those needs while maintaining prudent risk management.
Through its network of partner institutions, Element 22 helps facilitate participation and syndication loans, allowing credit unions to support larger or more complex financing requests by sharing exposure among multiple lenders.
“For example, when a loan exceeds a credit union’s internal limits, we can bring in additional partners to share the exposure while allowing the originating credit union to remain the primary point of contact,” says Kenny Leonard, Co-Founder and CEO of Element 22. “From the borrower’s perspective, the experience stays relationship-driven and straightforward—often appearing as a single credit union transaction.”
For NCACU, this approach allows us to continue supporting growing businesses as their needs evolve, without stepping outside our lending policies or comfort levels. It also ensures that strong local relationships don’t have to be handed off elsewhere simply because a business has outgrown a single institution’s capacity.
Real Impact for Real Businesses
One recent success story involved a former power company lineman who launched his own contracting business. “As the company expanded quickly, cash flow gaps emerged between job completion and payment,” notes Jacques. “Element 22 helped structure a flexible credit facility using both personal and business assets, allowing the business to maintain momentum.”
As the company’s financing needs eventually exceeded a single institution’s lending capacity, additional partners were brought in to support continued growth without disruption. Combined participation from partner institutions enabled NCACU to continue serving the member.
“It’s a clear example of how thoughtful commercial lending can support entrepreneurship, job creation, and long-term local economic strength,” Jacques adds.
Why Commercial Lending Matters—Now More Than Ever
Many credit unions—large and small—remain cautious about entering business lending, often due to limited resources or perceived complexity. Yet commercial lending can play an important role in diversifying loan portfolios, managing risk, and strengthening community impact.
As large banks merge and increasingly shift away from smaller-dollar commercial loans, credit unions are well positioned to help fill the gap—particularly in smaller and underserved communities. With a not-for-profit model and no shareholder pressure, credit unions can remain relationship-focused while supporting local businesses that larger institutions may overlook.
Through partnerships like the one between NCACU and Element 22, credit unions don’t have to choose between caution and growth. They can pursue both—strategically, compliantly, and in a way that stays true to their mission.
Looking Ahead
At NCACU, we see small business lending not as a departure from our mission, but as a natural extension of it. By working with trusted partners like Element 22, we’re able to expand our capabilities, support local businesses, and strengthen the communities we serve.
For credit unions considering commercial lending, the path forward doesn’t have to be complex. Sometimes, the right partnership makes all the difference.
