WASHINGTON, DC (May 1, 2017) — National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger today underscored credit unions’ commitment to their member small businesses in recognizing National Small Business Week, which is sponsored by the Small Business Administration and will run April 30-May 6.
“Credit unions, as member-owned, cooperative financial institutions, have a long tradition of helping their member small businesses obtain the capital they need to create jobs, meet their customers’ needs and grow,” said Berger. “Credit unions are true Main Street champions. Through lending to member small businesses, they are working each day to keep our communities strong and our economy thriving.”
Credit unions’ growth in member business lending has been steady and ongoing. This category of credit union lending grew 14.3 percent to a total of $62.4 billion in 2016. It was up 12 percent in each 2015 and 2014.
In 2015, NAFCU signed a three-year memorandum of understanding with the SBA aimed at getting more credit unions to increase their lending to member small businesses through SBA micro loan programs. NAFCU is also working with the National Credit Union Administration (NCUA) and lawmakers to create more opportunity for credit union member business lending.
A revised NCUA regulation supported by NAFCU took effect this January, giving credit unions more flexibility in creating and managing member business lending programs. In March, NAFCU testified before the House Small Business Subcommittee on Investigations, Oversight and Regulations on the SBA’s 7(a) loan program and the need for more credit union member business lending. Increasing credit unions’ MBL authority is a top priority for the association.
Federal law caps credit union member business lending to to the lesser of 1.75 times their net worth or 12.25 percent of total assets. During the financial crisis, credit unions played a critical role providing capital to small businesses. A 2011 study commissioned by the SBA’s Office of Advocacy found that during the 2007-2010 crisis, as banks’ small business lending decreased, credit union business lending increased as a percentage of assets.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
