MADISON, Wis. (8/23/13)--Member business loan (MBL) approval for credit union small-business loans rose in July for the first time in a year, according to a report by Biz2Credit, an independent commercial credit service.
Loan approval rose to 45.1% in July from 44.8% in June, the report indicated (creditunionsonline.com Aug. 19).
"We are beginning to see larger credit unions investing in Small Business Administration (SBA) loans," Biz2Credit CEO Rohit Arora said in a statement. "Possessing the license to carry out SBA loans is a huge advantage that the credit unions have over alternative lenders, and they are starting to promote this aggressively."
Credit union small-business loans have been crucial to small-business owners during the recession and moving forward from then, Mona Shand, public relations manager of marketing and communications for the Michigan Credit Union League and Affiliates, told creditunionsonline.com.
Metro CU, a $1 billion asset, Chelsea, Mass.-based credit union, reported its business loans are up 45% year over year, and $650 million asset Webster First CU in Worcester, Mass., saw an increase mostly in service sector startups applying for loans at the credit union, said the publication.
The article also mentioned small-business loans provided to entrepreneurs by $700 million asset Credit Union of Southern California, Whittier, Calif., and Omni Community CU, a $304 million asset credit union, based in Battle Creek, Mich.
The Credit Union National Association and credit unions are pressing Congress to increase credit unions' MBL cap to 27.5% of assets from 12.25%. Doing so would open up more opportunity to offer MBLs, inject $13 billion in loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers, CUNA said.