As the push to raise the member business lending cap continues,Michigan Business Connection LC said the battle shouldn't spookcredit unions in their efforts to aid to small businesses.

Speaking at the Michigan Credit Union League and Affiliates'Risk Management Conference on March 5, MBC CEO Bill Beardsley encouraged attendees to consider participationlending, which allows credit unions to pool lending resources andshare financial risk while providing businesses with financing.

“There are numerous ways to get more involved in participationlending, both as buyer and seller, but it's really important thatcredit unions know what they are getting into,” Beardsleyoffered.

Based in Ann Arbor, Mich., MBC underwrites and originates commercial loans and managesmore than $250 million in credit union business loans, according tothe CUSO.

During his session at the conference, Beardsley gave an overviewof the various types of participation programs in the industry,sources of these opportunities, and the due diligence that isessential before engaging in the business.

“Sustainable lending requires consistent and strategic use ofparticipation loans,” Beardsley said. “Credit unions canleverage this unique lending vehicle to provide larger businessloans at a low risk. This is truly a win-win for Michiganbusinesses seeking substantial loans from their trustworthy,community institutions.”

He added, “The much-publicized battle over member business lending legislation continues on. However, MBCdoesn't want to slow aid to the business community due to thearbitrary cap placed on credit union financing efforts.”