National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger and Small Business Administration Administrator Linda McMahon today signed a Memorandum of Understanding which will work to improve access to small dollar loans to small businesses across the nation.
The MOU will Increase the number of credit unions offering 7(a), 504, and Community Advantage SBA loans to business members. Involving credit unions in SBA’s programs will expand the accessibility of SBA products and ultimately strengthen small businesses. Credit unions stand to benefit from the reduction of their risk on small business loans and from increasing the financing resources available to their small business members. The target goal is to have 250 credit unions offer 10 or more SBA loans outstanding.
NAFCU intends to recruit and encourage credit unions to participate in SBA’s lending programs, in part by facilitating direct communication by SBA to NAFCU member credit unions.