LAS VEGAS — With the rollout of its new Small Business Administration 504 Secondary Market Program, Member Business Lending, LLC and WesCorp said it is providing a way for credit unions with ways to reduce regulatory caps, improve return on asset, reduce risk and expand business lending options.
Regulations limit a credit union's member business lending assets to 12.25% of total assets. The MBL/WesCorp program aims to help move those assets to the secondary market, eliminating the regulatory cap and freeing up assets for additional business lending, said Kent Moon, president/CEO of MBL at the CUSO's Member Business Lending Leadership Summit in Las Vegas Oct. 9-11.
SBA 504 loans provide long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for business expansion or modernization. Typically a 504 project includes a loan secured from the credit union with a senior lien, a loan secured from a certified development company with a junior lien covering up to 40% of the total cost, and a contribution of at least 10% equity from the borrower.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
- Educational webcasts, white papers, and ebooks from industry thought leaders.
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.