Search
 
Expert Opinion

Let’s Make More Business Loans: Now Is the Time for Credit Unions to Step Up

CUs have tremendous freedom and ability to fund loans to their local, small businesses - here's how to serve more of this market.

By Mark Ritter | June 19, 2020 at 09:00 AM
Small business loan application Small business loan application

When I started in credit union business lending in 2001, the numbers to live by were 12.25, 80 and 100. Credit unions were strictly limited to 12.25% of assets in total member business loans, the loans were limited to 80% loan-to-value or less, and 100% of them needed to be reviewed annually. As a result of this tight box, the industry evolved into primarily funding loans secured with real estate. In fact, December 2019 Call Report data showed over 90% of credit union commercial loan balances are secured by real estate. That focus on real estate investors leaves many small business owners out.

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?

Dig Deeper

 

Recommended Stories

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

Copyright © 2023 ALM Global, LLC. All Rights Reserved.