C-Suite Wednesday — SBA Wants More Loans from Credit Unions

May 8, 2019

C-Suite Wednesday — SBA Wants More Loans from Credit Unions

The National Credit Union Administration and SBA have signed an agreement to increase credit union participation in SBA lending.

Fewer than one in 10 credit unions participate in SBA’s lending program

The NCUA says the memorandum of understanding “to undertake a series of initiatives that will help credit unions better understand and make use of SBA-backed loans and resources. These joint initiatives may include webinars, training events, and media outreach.”

Credit unions held 6,532 SBA commercial loans worth $2.1 billion as of Dec. 31, 2018,

NCUA Board Chairman Rodney E. Hood said the announcement’ provides an “opportunity to highlight SBA-guaranteed loans as another tool for credit unions to support small businesses and foster economic growth in their communities.”

“Credit unions are well-situated to understand and work with their local businesses and entrepreneurs to extend affordable credit,” he said.

SBA Acting Administrator Chris Pilkerton said the partnership with the NCUA will increase awareness of SBA programs among credit unions.

“Small businesses are the drivers of America’s economic growth and we want to ensure they are equipped with the tools they need for success,” Pilkerton said. “I look forward to our two agencies collaborating on shared best practices, educational initiatives, and increasing our support of current and future entrepreneurs.”

Among the SBA lenders, commercial loans made up 9.1% of total loans, and SBA loans made up 4.8% of their commercial portfolio.

The largest credit union SBA lenders at the end of 2018 were:

Mountain America Federal Credit Union, Salt Lake City — 373 SBA loans, $164.7 million

Redwood Credit Union, Santa Rosa, Calif. 270 SBA loans, $159.2 million

Apple Federal Credit Union, Fairfax, Va. 71 SBA loans, $78.5 million.

Members Choice Credit Union, Houston 70 SBA loans $51.6 million.

Alaska USA Federal Credit Union, Anchorage 66 SBA loans, $45.8 million