The fight to increase the current 12.25% member business lendingcap has been a long and arduous one.

Meanwhile, in the thick of it all, credit unions continued togrow their business loan programs this year and the industry isexpected to follow suit in 2013.

According to Callahan and Associates, 65.3% of credit unionswith more than $50 million in assets offered MBLs, as of April. Theamount of outstanding MBLs was $33.8 million with $200,814 beingthe average balance.

More 2013 Watch

• Dec. 28, 2012 Marketing in the Year Ahead
  
• Dec. 27, 2012 Gen Y in the Year Ahead
  
• Dec. 27, 2012 Member Investments in the Year Ahead
  
• Dec. 26, 2012 Human Resources in the YearAhead
• Dec. 21, 2012 Credit Union Taxation in the YearAhead
• Dec. 20, 2012 CUSOs in the Year Ahead
• Dec. 20, 2012 NCUA Board in the Year Ahead
• Dec. 19, 2012 Cards in the Year Ahead
• Dec. 19, 2012 Mortgage Lending in the YearAhead
• Dec. 18, 2012 Low Income Service in the YearAhead
• Dec. 18, 2012 Bank Conversions in the YearAhead
• Dec. 17, 2012 Student Lending in the YearAhead
• Dec. 17, 2012 Auto Lending in the YearAhead
  

While a $1.8 billion (4.4%) gain in MBLsalso contributed to improving loan portfolio growth, this source ofgrowth and net interest margin is losing steam as many creditunions approach their MBL caps.

In 2012, credit unions started competing with a number of newplayers on the business lending front including Amazon and Costco.Industry experts don't expect this trend to let up in 2013,particularly among firms that are offering more micro loans, aniche product seen at many credit unions.

A number of credit unions beefed up their loan participationprograms this year; among them the $50 billion Navy Federal CreditUnion in Vienna, Va., which announced a lending collaborationeffort with other cooperatives. Several CUSOs reported recordlending in 2012 with their credit union owners and partners.

Given the ongoing push to grow loans, 2013 is expected to beanother year for the industry to form more collaborations, tap intoundiscovered small business sectors and round out their programs toinclude offerings such a remote deposit capture and mobilebanking.

Cash mobs, which grew in popularity this year to help supportlocal small businesses, caught on big with credit unions and CUSOs.With many of them either hosting or participating in the effort,the linkage could help get the word out more in the community thatcredit unions are an alternative to banks when it comes to smallbusiness capital needs.