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NCUA, SBA Launch Small-Business Lending Initiatives

Mon, Apr 13, 2015

Washington, District Of Columbia

NCUA and the Small Business Administration (SBA) have teamed up on a series of initiatives that connect small businesses with local credit unions to gain better access to capital. SBA-guaranteed loans provide credit to business owners who might not qualify for standard business loans. The guaranteed portions of SBA-backed loans don’t count against credit unions’ statutory cap on member business loans (MBLs). SBA guarantees range from 50% to 90% of the principal of each loan, depending on the loan type. NCUA and SBA signed a memorandum of understanding in February outlining a series of educational initiatives during the next three years that include webinars, examiner training on SBA programs, data resources, and media outreach. Also, CUNA staff met with SBA officials to highlight the mutually beneficial relationship between credit unions and the agency. This collaboration aims primarily to increase credit unions’ awareness of SBA programs. NCUA also launched a Web page that provides detailed information about the agency’s member business lending regulations, supervisory guidance, links to the SBA’s loan programs, and related articles from The NCUA Report. In March, NCUA and SBA offered their first joint webinar, “Balancing Member Business Loan Portfolios with SBA Guarantees.” Access the Small Business Lending Web page under “Credit Union Resources and Information” at ncua.gov, and

 

Source: CUNA News Now