Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-CUNA President and CEO Dan Mica wrote a letter to the editor published in the April 25th edition of the American Banker countering a banker’s accusation in an earlier letter that NCUA’s proposed member business lending rule would take business loans from small banks. “The average credit union member business loan is only $118,000. If, as he says, Mr. [Harley] Bergmeyer’s bank [Saline State Bank, Wilber, Neb.] is willing to make loans of that size, he should be applauded,” Mica wrote. Bergmeyer, chairman of the American Bankers Association’s Credit Union Advisory Group, wrote the April 11th letter entitled “NCUA Plan Would Take Loans Away from Small Banks,” which asserted, “The $1,000 business loan is a staple of community bankers across America.” The banker’s letter countered comments from NCUA Board Member Deborah Matz in an April 2nd Banker article, “NCUA Re-Ups Push for CUs to Do More Biz Lending.” Mica also noted that Matz has emphasized that many banks would not make such small loans or steer small business owners to higher interest rate credit cards. He cited a recent survey (Greenwich & Associates, “Market Pulse,” January 2003) in which nearly 20% of small businesses rated their primary bank’s ability to meet their credit needs as below average or poor. “America’s small businesses drive our economy, and they need capital. It’s unfortunate-but not at all surprising-that Mr. Bergmeyer and the ABA’s reflexive response is to penalize credit unions for stepping forward to provide affordable credit to small-business owners, particularly those just starting out,” he wrote. “There’s room for credit unions and banks in this market, and small-business borrowers benefit by having the choice.” Mica pointed out that credit union business loans account for just 0.5% of the total market in the United States. -

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.