NAFCU: Smaller Biz Loans Thrive at CUs
While loans under $100,000 are making up a small percentage of banks’ small business loan portfolios, credit unions are seeing much more activity.
Loans under $100,000 accounted for 6.6% of business loans at banks, according to FDIC institution data as of June as cited by NAFCU’s November’s Economic & CU Issues Monitor.
Meanwhile, credit unions said 30.8% of their business loans were under $100,000.
Credit unions are also extending credit to businesses that cannot find it elsewhere. In a NAFCU survey, 11.4% of respondents said they granted a business loan to a member who had been turned down by a bank.
The same portion of credit unions said they were forced to turn down a business loan due to the 12.25% of assets member business lending cap, NAFCU reported.
Credit union member business loan delinquencies fell to 3.64% in June, while business lending delinquencies for FDIC institutions were 3.94%, according to NAFCU.