Lending

Credit unions and other lenders have received word that the SBA has reactivated the Recovery Act queue to possibly approve more loans if additional funding becomes available.

WASHINGTON -- Credit unions last week received a ray of good news on their goal of raising the cap on member business loans.

With competition coming back strong into the auto lending market, many indirect lending supporters argue that if a credit union is not at the dealership, it is missing out on loans.

The economic downturn of the past two years has been tough on banks, but it has presented the best opportunity in decades for credit unions to grow by expanding their base of auto loans.

Building relationships with dealers is critical to indirect lending. It's also important to cross sell those new members. But meet and greet is the most vital link in indirect auto lending success.

According to a recent Federal Reserve Board survey, those banks that have started easing their commercial lending standards have done so in response to increased competition from other banks and nonbank sources.