Member Business Lending Cap Keeps CUs Out of the SBA Biz
Credit unions aren’t willing to make the initial investment required to offer Small Business Administration-supported loans if they face a restrictive cap, Redwood Credit Union President/CEO Brett Martinez told a House subcommittee.
“That’s where the business lending cap ties in,” Martinez told Credit Union Times on Friday after his testimony on Thursday. “The 330 credit unions that are currently making SBA loans are managing to the cap, and the rest say it’s a big investment of time and money, to just hit a cap in the future. No thanks.”