Ohio Credit Unions Get Shine on Business Lending Progress

DAYTON, Ohio – Though their numbers are small compared to banks here, Ohio credit unions are making headway in the business lending arena. Several of them were profiled in the Nov. 14 issue of the Dayton Business Journal including $136 million Day Air CU; $1 billion Wright-Patt CU; $125 million River Valley CU; $67 million Code Credit Union Inc.; and $117 million Chaco CU. While the number of CUs that have launched business lending programs, which typically include SBA loans, has grown, figures are still relatively small compared to other financial institutions, the publication reported. "The numbers are so small and the expansion into business lending by local CUs is so new that the statistics don't even register," the article read. David Shoup, director of research and information for the Ohio Credit Union System, said business loans are still a good way for CUs to diversify their loan portfolios. The publication reported that CUs are getting their foot in the door in part because small business loans are not as profitable for larger banks and as a result, banks tend not to focus on them as much. Shoup told the publication that while the loans are risky, aligning with SBA helps to reduce some of the risk.