Business Lending – Credit Union Business Magazine

By James Collins

If the NCUA’s proposed new net worth requirements are any indication, it would seem that our regulators feel that member business loans are about as desirable as a Florida time-share in hurricane season. Of course, the staggering number of credit unions that have failed—a grand total of four—probably overwhelms the number of credit unions that failed as a result of inadequate regulatory supervision—a number exceeding four.

That notwithstanding, by the end of 2013 credit unions had grown member business lending programs dramatically by $45.9 billion (an increase of 10.1 percent from 2012). Still, the demand for business loans continues to outstrip supply as evidenced by these approval rates:

Percentage of Small Business Loans Approved

Large Banks 20.0%
Small Banks 51.4%
Credit Unions 43.7%
Alternate Lenders 63.2%
Brother in-law George 00.0%*

*Source: Biz2Credit, July 8^th, 2014 (except for George who told me to get a real job and “quit begging for a handout.”)

So who are these “alternate lenders”? And, why does George think my job is unworthy of consideration?

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