LANSING, Mich. (11/30/15)--Thanks to credit unions’ continued commitment to small-business lending, consumers had more options this weekend to support the local economy on Small Business Saturday, an event started in 2010 by American Express that encourages consumers to venture out into their communities and patronize local businesses.
And that commitment can be seen in states nationwide.
In Michigan, for example, in the first two quarters of 2015, the state’s credit unions pumped up business lending portfolios by 35.6%. In Detroit alone, credit unions experienced a 62.5% and 63% increase in business lending in the first and second quarters respectively.
The heightened activity fuels growth at credit unions and creates jobs and opportunities for businesses statewide, the Michigan Credit Union League said.
Credit unions in Hawaii also have had recent success in small business lending, with HawaiiUSA FCU, Honolulu, recently being named a top Small Business Administration (SBA) lender for 2015.
Furthermore, the SBA’s Hawaii District Office reported a 57% annual jump in business lending in Hawaii, Guam and American Samoa.
SBA loans provide credit unions a valuable resource when it comes to business lending, as up to 85% of the loans are guaranteed by the SBA, and the full 85% doesn’t count against a credit union’s 12.25% member-business lending cap on assets.
CUNA continues to press lawmakers to approve legislation that would push the cap to 27.5%.
Moving into next year, credit unions likely will only continue to focus on member business lending, recent reports have revealed.
In New Jersey, the SBA and the National Credit Union Administration have entered into a partnership that has begun to pay off for the state’s credit unions, with SBA lending climbing 37% since 2014.
Harry Menta, SBA New Jersey division spokesperson, told NJBIZ.com that credit unions are an untapped market, and the SBA wants to work closer with them in the future.
In Ohio, meanwhile, credit unions approved 49% more loans to businesses in the first six months of this year than over the same period last year.
The Ohio Credit Union League told Columbus Business First that the bolstered numbers show that credit unions fill a need for small businesses and that, in turn, lawmakers should pounce on the opportunity to allow them to double-down on this effort by raising the credit union member-business lending cap on assets.