BOSTON-With standing room only, Joanna Bruno, president of J.R. Bruno & Associates told attendees of NAFCU's 36th Annual Conference that credit unions have the opportunity to hook some pretty big fish through Small Business Administration-backed loans. She noted that while it is called the `Small' Business Administration, it can guarantee loans for manufacturing companies up to 500 employees and wholesale and distribution companies up to 100 employees or retail and service businesses with up to $6 million in sales and contracting up to $12.5 million in sales. "As a credit union, you have a bright future as to who you can lend money to under this program," Bruno said. Credit unions have a relatively simple application process for getting started, including turning in the applicant's charter, bylaws, the most recent 5300 report, and evidence of NCUA insurance coverage, among other things. "Right now you are losing market share to the banks who are doing small business lending," she said. In addition to the business loans, credit unions should also be able to cross sell more products easier, increase loan income and profits, better service members, and strengthen that deposit relationship. Bruno estimated the lender's profits on three different types of SBA-guaranteed loans. First, she explained a $100,000 Low Doc loan, which streamlines the application process, over seven years at prime (assuming 5%) plus 2.75% with an 85% guarantee can net a credit union more than $8,000 or a 53.42% return. A 75% SBA-backed 7(a) loan for $200,000 over 10 years at prime plus 2.75% should yield the lender a 30% return on its loan. A $500,000 real estate loan for 25 years at prime plus 2% with a 75% guarantee should put $36,000 in the credit union's coffers at a 28.8% return. [email protected]