NCUA and the Small Business Administration (SBA) Tuesday launched a three-year collaborative effort to bring small businesses and credit unions together and expand awareness about SBA programs. The agencies signed a 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.
“National Small Business Week is one week away and is an important opportunity to highlight SBA-guaranteed loans as another tool for credit unions to support small businesses and foster economic growth in their communities,” said NCUA Chairman Rodney Hood. “The credit union mission is grounded in the concept of providing affordable financial products and services tailored to meet their member’s needs, and that includes helping Americans start or expand businesses. Credit unions are well-situated to understand and work with their local businesses and entrepreneurs to extend affordable credit. I am delighted that we will be working with the SBA to help credit unions make these important investments, and I want to encourage credit unions to learn more about SBA programs.”
“The SBA’s partnership with the NCUA will provide an increased awareness of SBA programs that empower small businesses owners and credit unions from across the nation. 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,” SBA Acting Administrator Chris 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.”
Commercial lending by federally insured credit unions has grown in recent years. At the end of 2018, credit unions reported more than $71 billion in commercial loans outstanding.
According to the SBA, nearly 200 credit unions have participated in the SBA guaranty program since October 2017.