GERMANTOWN, Md. — Mid-Atlantic Financial Partners, LLC said 2007will be the year that it revs up expanding business services toother credit unions.

Launched in 2003, the CUSO is owned by $200 million Mid-AtlanticFederal Credit Union and $1.7 billion Visions Federal Credit Union.It currently serves its two owners and has amassed $20 million incommercial loans for both credit unions. MAFP has also done loanparticipations with a half dozen credit unions. For 2007, the CUSOsaid it will also offer its consulting services to help creditunions evaluate potential expansion opportunities.

“I believe that the CUSO can do the same for many other creditunions–whether they are interested in using this resource as aone-time service or becoming a part-owner for the long-term,” saidCharlie Thomas, CEO of Mid-Atlantic FCU.

MAFP has always had the authority to expand to other creditunions, but with member business lending being the fastest growinglending category, the timing is right to help those credit unionsthat want to go in that direction, Thomas said. The CUSO can assistcredit unions with commercial lending, lines of credit, businessaccounts, merchant card services, portfolio creation, secondarymarketing, MBL and loan participation policies and loan servicingamong the services. With the growing number of business servicesCUSOs launched, MAFP's “? la carte” approach might make it standout among others, said Frank Amantia, MAFP president.

“If somebody wants to get involved on a minimal basis with oneparticular product or get involved on multiple levels, we canaccommodate them,” Amantia said.

The fee structure depends on what a credit union's needs are,Amantia said. MAFP will be available to credit unions nationwide,regardless of field of membership.

“Even in our membership, we have people in the military thathave businesses on the side such as real estate investing,” hesaid.

Credit unions have an advantage with business loans because mostbig banks don't want services loans under the $1 million thresholdand some small business owners just don't feel comfortable walkingin to a mega bank, Thomas said. But there are a growing number ofregional and community banks that have brought business lendingback to the forefront, Amantia said.

“A small business owner is a consumer and small businessesemploy consumers,” Amantia said. “We've seen a migration of banksthat are moving their small business lending operations forward andare trying to carve out this piece of the pie.”

That means credit unions can't remain the “proverbial deercaught in the headlights” not knowing where to turn or choosing notto turn, Amantia cautioned. Some credit unions lament they aren'tready to roll out business services because they don't haveexperienced staff in those areas as a recent NAFCU Flash Report(see story on previous page) discovered. Amantia said with theamount of collaborative efforts underway in the industry, there areways around that.

“You don't have to have the internal expertise or even thefunding,” Amantia said. “Really, there's no excuse for not offeringbusiness services right now.”

Indeed, Thomas said business services are akin to what mortgageswere for the movement more than 15 years ago–barely there, butgrowing. Now, credit unions have tackled that mortgage hurdle andgone beyond.

“I'm convinced that business lending is the next frontier forcredit unions with the next obvious piece being [businessdeposits],” Thomas offered. “Particularly, if you're a community ormulti-SEG credit union, there are thousands of small businesses outthere–many with less than 10 employees–that are waiting to beserviced.” –[email protected]