X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

EAU CLAIRE, Wis. – A task force organized by Royal CU to study the feasibility of forming a member business lending CUSO has gotten the green light from the credit union’s board to conduct a study to look in to the market opportunity of running a member business lending CUSO and to explore the types of services the CUSO would provide. The group met in May to discuss the options and presented them to Royal CU’s Board. It will present the findings of its study at the credit union’s planning meeting in September. Royal CU has been involved with member business lending for 15 years. President/CEO Charles Grossklaus said the $575 million CU has gotten calls from other credit unions who are interested in offering the service but either don’t have the expertise to support providing MBL’s themselves or want guidance to set up their own program. Grossklaus said he knows there is a need for a member business lending CUSO, “But we don’t want to get into it unless we’re sure we can make enough loans to cover our costs and make something for our members. We won’t get into it unless it’s good for our members.” Royal CU will be looking, for example, into whether it would be better to participate MBLs out with other credit unions, or originate the loans and service them itself. The credit union will also be considering selling its expertise to other credit unions. “We don’t know what we’re allowed to do as a credit union under the state’s member business lending rule, so we’re going to have to look at that more closely as well,” said Grossklaus.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.