Member Business Lending in the Spotlight
Open for business?
Member Business Lending (MBL) is a topic that continues to generate a lot of buzz. Considering our current economic state, why are MBLs getting so much attention? Because they are one of the fastest-growing segments of credit union loan portfolios, with an average loan growth rate of 4%*. Some credit unions are reporting even higher rates. CUNA’s News Now recently reported that in 2011, Michigan credit unions increased their MBLs by 21.7%!
Other statistics to note:
- The number of credit unions offering MBLs: 2,233
- Average size of credit union MBLs: $219,120
“While we know that MBLs may not be for every credit union, CUNA’s goal is to provide the most comprehensive information possible to help credit unions make an educated decision on whether to offer these services,” says Doug Benzine, Vice President of CUNA’s Advisory Services. To that end, we present a number of resources for credit unions currently offering or considering adding MBLs to their portfolio including (but not limited to):
1. Member Business Lending Resources;
2. CUNA’s Business Lending Institutes: Fundamentals, Credit Analysis and Advanced Credit Analysis; and
Currently the cap on MBLs is 12.25% of a credit union’s total assets. As the national trade association, CUNA is advocating Congress to enact legislation which would increase the cap to 27.5% for well-capitalized credit unions.
Participate NOW in our Call to Action to increase the MBL cap, by contacting your state representatives and urging them to include Small Business Lending Enhancement Act in the small business jobs bill.
*Source: FDIC, NCUA and CUNA E&S
