In a Sept. 8 op-ed, David Adams, president/CEO of the MichiganCredit Union League, said that while banks are still needed to helpbolster the economy, credit unions have much to offer in themeantime.

Adams was speaking in the context of helping small businessesand advocating to increase the member business lending cap from12.25% to 27.5% of assets, according to an op-ed on freep.com.He called on Congress to pass legislation that would make the newcap possible.

"We all hope that banks return to full strength soon because oureconomy needs a strong banking sector. In the meantime, creditunions offer a viable alternative for small businesses," Adamswrote. "It has been particularly tough to get loans. But creditunions are in a unique position to make loans to help smallbusinesses turn things around."

Michigan banks have had to shrink their balance sheets in orderto get stronger for the future, Adams wrote. Credit union smallbusiness loans were up 18% in 2009 while banks' commercial andindustrial loans fell by 68%, according to the FDIC. Adams alsocited the Credit Union Small Business Financing Alliance, apartnership with several Michigan state agencies to further improvefinancing. So far, 30 CUs have volunteered $43 million in smallbusiness loan financing, he said.

"Building a new, vibrant Michigan will take cooperation frompublic and private sectors, but the most important factor is smallbusiness growth," Adams wrote. "Credit unions can't meet all thebusiness borrowing needs of our economy, but we can be an importantresource, especially for the small business community."