TROY, Mich. — In the midst of the state's tough economy, the growing entry of Michigan's credit unions into business lending was recently profiled.
A March 14 article in the Oakland Business Review mentioned a number of credit unions and CUSOs that are building their business lending programs. The $229 million Michigan Catholic CU has increased its business lending 200% over the past couple of years to $12 million though an alliance with Commercial Alliance, a CUSO, the publication reported.
The $184 million MidWest Financial's partnership with Michigan Business Connection, LC has helped the credit union to secure deals like the recent $12 million one for a cardiovascular surgery unit.
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The article also mentioned the Credit Union Regulatory Improve-ments Act (H.R. 1537), which proposes raising the current 12.25% of assets member business lending cap to 20%. Despite Michigan's credit unions holding only 1% of commercial loans, many banks view CURIA's proposals as an unfair advantage, the article noted. Dave Adams, president/CEO of the Michigan Credit Union League, said credit unions are not a threat to banks and "it's important to have a vibrant for-profit sector and also a nonprofit sector."
Besides offering business loans, some of Michigan's credit unions are merging for better market share and economies of scale, the publication reported.
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