As the push to raise the member business lending cap continues, Michigan Business Connection LC said the battle shouldn't spook credit unions in their efforts to aid to small businesses.
Speaking at the Michigan Credit Union League and Affiliates' Risk Management Conference on March 5, MBC CEO Bill Beardsley encouraged attendees to consider participation lending, which allows credit unions to pool lending resources and share financial risk while providing businesses with financing.
“There are numerous ways to get more involved in participation lending, both as buyer and seller, but it's really important that credit unions know what they are getting into,” Beardsley offered.
Based in Ann Arbor, Mich., MBC underwrites and originates commercial loans and manages more than $250 million in credit union business loans, according to the CUSO.
During his session at the conference, Beardsley gave an overview of the various types of participation programs in the industry, sources of these opportunities, and the due diligence that is essential before engaging in the business.
“Sustainable lending requires consistent and strategic use of participation loans,” Beardsley said. “Credit unions can leverage this unique lending vehicle to provide larger business loans at a low risk. This is truly a win-win for Michigan businesses seeking substantial loans from their trustworthy, community institutions.”
He added, “The much-publicized battle over member business lending legislation continues on. However, MBC doesn't want to slow aid to the business community due to the arbitrary cap placed on credit union financing efforts.”
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
