LAS VEGAS — To provide credit unions with ways to reduce regulatory caps, improve return on asset, reduce risk and expand business lending options, Member Business Lending, LLC and WesCorp announced today its new Small Business Administration 504 Secondary Market Program.

Regulations limit a credit union's member business lending assets to 12.25% of total assets. The MBL/WesCorp program aims to help move those assets to the secondary market, eliminating the regulatory cap and freeing up assets for additional business lending, said Kent Moon, president/CEO of MBL at the CUSO's Member Business Lending Leadership Summit in Las Vegas today.

SBA 504 provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for business expansion or modernization. Typically a 504 project includes a loan secured from the credit union with a senior lien, a loan secured from a certified development company with a junior lien covering up to 40% of the total cost, and a contribution of at least 10% equity from the borrower.

“This segment of the investment market is showing strong growth and favorable future potential,” said Bob Burrell, executive vice president/chief investment officer for WesCorp.