WASHINGTON—This week is National Small Business Week, sponsored by the Small Business Administration, and NAFCU President and CEO Dan Berger underscored credit unions' commitment to their member small businesses.
“Credit unions, as member-owned, cooperative financial institutions, have a long tradition of helping their member small businesses obtain the capital they need to create jobs, meet their customers' needs and grow,” said Berger. “Credit unions are true Main Street champions. Through lending to member small businesses, they are working each day to keep our communities strong and our economy thriving.”
Credit unions' growth in member business lending has been steady and ongoing. This category of credit union lending grew 14.3% to a total of $62.4 billion in 2016. It was up 12% in each 2015 and 2014, noted NAFCU.
In 2015, NAFCU signed a three-year memorandum of understanding with the SBA aimed at getting more credit unions to increase their lending to member small businesses through SBA micro loan programs. Increasing credit unions' MBL authority is a top priority for the association, NAFCU stated.
NAFCU supported the revised MBL rule that the NCUA put into effect this January, and it worked alongside CUNA to support the rule in the face of a banking industry lawsuit that has been dismissed.
In March, NAFCU testified before the House Small Business Subcommittee on Investigations, Oversight and Regulations on the SBA's 7(a) loan program and the need for more credit union member business lending.
National Small Business Week runs through May 6.