ALEXANDRIA, Va.—In a move to expand CU member business lending, NCUA is partnering with the U.S. Small Business Administration on a series of educational initiatives.
NCUA and the SBA have signed a memorandum of understanding outlining a series of initiatives during the next three years that include webinars, examiner training on SBA programs, data resources and media outreach. The MOU notes that NCUA and SBA agree on the importance of providing access to loan programs for small businesses, especially underserved borrowers. The primary objective of the collaboration between NCUA and the SBA is increasing the awareness of credit unions to programs offered by SBA.
“This is a tremendous opportunity for credit unions and small business owners,” NCUA Board Chairman Debbie Matz said in a release. “SBA-guaranteed loans made by credit unions provide needed capital for existing small businesses and start-ups that might have difficulty obtaining loans from other institutions. With a significant portion of principal guaranteed by the full faith and credit of the United States government, SBA loans rank among credit unions’ safest loans. There is a vast untapped capacity for credit unions to make more SBA loans. This initiative will help us unlock that capacity and put it to work for credit unions, their members and their communities.”
“It’s about to become easier for credit unions to help their members finance small business ventures,” SBA Administrator Maria Contreras-Sweet said. “It’s a natural fit; credit unions are some of this nation’s most trusted mission-based lenders. This partnership will have another benefit in that it will serve the needs of encore entrepreneurs, people who’ve worked all their lives in one career who decide to strike out on their own. SBA will backstop the loans, and credit unions’ long-term relationships with their members put them in an ideal position to assess their character and creditworthiness.”
NCUA and the SBA have scheduled a joint webinar for credit union officials and NCUA staff to learn more about SBA lending. The webinar is scheduled for March 4 at 3 p.m. ET.