To help credit unions looking to grow their business lending programs, Navy Federal Credit Union said it has launched a new commercial participation loan program.
Making its debut Monday, the C-PaL program will create partnerships between the $49 billion Navy Federal and other credit unions nationwide. The partnering credit union would be the originator of the loan with Navy Federal being a purchaser of a significant portion of the loan, the Vienna, Va.-based cooperative said.
For partnering credit unions, Navy Federal said the plus would be reducing the hit toward their loan cap while retaining the servicing commitment and the member relationship.
“This is a timely and responsive move,” Jim Salmon, executive vice president of business services at Navy Federal, said in a statement. “We are ready to help credit unions who are nudging close to their commercial loan caps. By partnering with other credit unions, we hope to bring some relief to an ever-increasing problem.”
Credit unions interested in C-PaL can contact Navy Federal.
