One cause near and dear to the hearts of many credit unions is to comprehensively support their local communities. One way credit unions can do this is to partner with small businesses and employees of small businesses to offer account origination and lending options. By adding individual members and business accounts from small businesses, credit unions can facilitate community engagement and support local economies.
According to the US Small Business Administration (SBA), approximately 30.2M small businesses employ 48.9 million people. In 2016, the Federal Financial Institutions Examination Council valued small business loans less than $100,000 at $82.6B. With the number of banks decreasing steadily, the opportunity for credit unions to work with the small business market is ripe for the taking.
Recognizing the unique opportunity small business presents to credit unions, the NCUA issued a memorandum of understanding with the SBA to provide credit unions with the resources to better understand and serve the small business market. This partnership includes the SBA guaranty program, with more than 200 credit unions participating.
The sheer number of small businesses and their employees paired with increased lending market demand, and an SBA/NCUA partnership, there is no reason not institute a small business trade, industry, or profession (TIP) charter designation.
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