While year-to-date member business loan originations have fallen by $2.12 billion as of Sept. 30, 2009, outstanding balances increased over September 2008 levels to reach $28.9 billion, according to data from Callahan & Associates Inc.
The drop in MBL originations does not include business loan balances totaling less than $50,000, which eliminates most business credit card loan balances and any small, fixed-asset purchase loans, Callahan noted.
Still, the small business sector continues to have untapped territories for credit unions. Of the 26 million small firms in the United States, two-thirds do not have business bank accounts, according to Callahan. Of those two-thirds, 69% have a personal checking account that they use for business purposes. Credit unions have made inroads in offering such services as business credit cards, lines of credit, long-term financing for equipment purchases, remote deposit capture and invoice management.
--msamaad@cutimes.com
