WASHINGTON -- NCUA Vice Chairman Rodney Hood touted member business lending as one way for credit unions to further serve their communities during an address last week at CUNA's Governmental Affairs Conference.
As evidence of his commitment to credit union participation in small business lending, Hood announced a new position that has been created at the agency. Hood explained that NCUA would be adding a member business lending official to its staff to help facilitate business lending ideas into action and serve as a sounding board. The position is currently being advertised.
"Small business is critically important to sustaining our communities," the vice chairman said. He pointed credit unions toward SBA-backed lending as well as business loan guarantees from his former employer, the U.S. Department of Agriculture. The guarantees help keep credit unions from hitting their member business lending cap of 12.25% and keep the regulators happy with less risk on the books.
"Without a doubt credit unions have made an impact. The question is how do credit unions continue to have an impact?" Hood said.
Other areas where he suggested credit unions should get more involved included post purchase homeownership counseling, educating younger consumers on the benefits of credit union membership, and capitalizing on the transfer of wealth from the older generations to the new through trusts and other services.