GRAND RAPIDS, Mich. (8/12/15)--Michigan-based businesses have been looking to credit unions for financing at a higher clip recently. That fact and credit unions’ dedication to small businesses in their communities were highlighted by the Grand Rapids Business Journal.
In Grand Rapids, for example, credit union business loans outstanding jumped by more than 50% over the 12-month period ending in the first quarter, Laura Michels, media relations for the Michigan Credit Union League, told the Grand Rapids Business Journal, citing CUNA numbers.
First mortgages and new- and used-car loans also surged, climbing by 36.5%, 23.9% and 16.9% respectively.
Statewide, member-business lending activity rose by 16.3%, far ahead of the national average of 11.5%, according to the data. MCUL also told the Business Journal that business lending has strengthened every year since the economic downtown in 2007.
“Michigan credit unions understand the importance of lending to small businesses as a way to stimulate the economy and spur business growth,” said Dave Adams, MCUL president/CEO. “The industry stepped up to fill a need during the recession in the same way it shows its steadfast support for its 4.79 million credit union members (in the state).”
CUNA has scheduled a webinar for Aug. 20 to help members parse out the recently proposed rule by the National Credit Union Administration that would largely remove all member-business lending requirements not specifically present in the Federal Credit Union Act.
Meanwhile, Michigan-based credit unions handed out roughly $3.5 billion in total loans in the first quarter, the highest total on record for 1Q. CUNA’s numbers also showed that that the 11.5% jump in total loan growth in the first quarter was the fastest year-over-year acceleration since 1993.
“We’ve got a lot of demand out there,” Brent Lowell, vice president of commercial and consumer lending, Option 1 CU, Grand Rapids, told the Business Journal.