SBA: CUs Pick Up Lending Slack
Over the past 24 years, when banks were pulling back on lending to businesses, it appears credit unions were quietly and consistently stepping in to fill the void.
In a rare report on credit unions from the Small Business Administration, “The Growing Impact of Credit Unions on Small Business Lending,” data from the agency’s Office of Advocacy looked at how much business lending at credit unions responded to a decrease in bank business lending. The report also examined the effects of changes in bank business lending on business lending by credit unions.
While credit unions have devoted more of their assets to small business loans since the 1980s, banks have gone in the other direction, according to the report. The growth rose gently during the 1990s and much more rapidly through 2010, Wilcox noted. In contrast, banks devoted a fairly steady share of their assets to SBLs until the 2000s, when their share fell rather substantially, he added.
Even though credit union SBL growth continued for a decade, the figures were still not a match for bank business lending activity. From 1994 to 2010, credit union SBLs grew from “negligible