Middleman said over the past decade, the CUSO has developed and refined its policy template. Each year, the template is updated to help credit unions incorporate the most recent regulatory changes and best practices.

One of the major revisions to this year's policy is a revamp of the risk rating system to segregate commercial real estate income property lending from commercial and industrial lending, Middleman said. This aims to create a better match of cash flows to the risk rating, he added. The CUSO's upgraded credit presentation now focuses more on balance sheet analysis and includes more details on business history, marketplace and management information, risk monitoring and loan exit strategies according to CUBG.

“We've refined this over the years through the economic times and heightened examiner scrutiny,” said Jim Brekke, CUBG senior vice president and chief credit officer.

Middleman said it's critical for a credit union's board of directors and business loan committee to fully understand credit.

“It's not just about doing a simple income property loan and calling it good. Credit unions are looking to diversify, to get into C& I loans, and into full deposit relationships. This updated credit presentation allows us to accommodate these types of requests.”