HARAHAN, La. (8/29/13)--The total dollar amount of member business loans (MBL) outstanding for Louisiana credit unions increased 16.7% as of March 2013 compared with March 2012, the Louisiana Credit Union League said.
Member business loans totaled $172.3 million in March compared with more than $147.6 million the same time in 2012. The number of loans rose to 803 in 2013, compared with 747 in 2012, a 7.5% increase, the league said.
Over half of the total loans outstanding are real-estate secured business loans. Owner-occupied non-farm non-residential property accounts for 30.51% of dollars outstanding and non-owner occupied non-farm non-residential property accounts for 27.81% of dollars outstanding.
This growth in the first quarter continues of a strong growth trend business lending at Louisiana credit unions for the past five years. Since 2008, the number of business loans outstanding for Louisiana credit unions has doubled to 888 in December 2012 from 418 in December 2008. The total amount of business loans outstanding has more than tripled to more than $157 million from more than $51.2 million.
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.