Business Lending Leads All Lending Categories in Growth for 2005

Member business lending continues be a fast growing lending area for credit unions. Find out where the industry stands in member business lending at year-end and what opportunities lie ahead.


Of the 1,794 credit unions that offer business lending, 310 of them began programs in 2005. In 2005, business lending was the fastest growing lending area, with outstandings rising 34.1 percent. The ten-year compound growth rate for member business loans is 23.0 percent.

Total member business loans outstanding reached $15.9 billion at year-end, which makes it the smallest lending category when it comes to balances outstanding (3.4 percent). In a market of $1.1 trillion, there is plenty of growth in this area.

Credit unions are succeeding by catering more towards small business owners. The average member business loan balance is $289.6 thousand. Continuing to develop this niche will be the key to future growth. As credit unions develop more staff expertise in this area and are able to provide more business services to members, particularly in the small business niche, the results should continue to be strong.

To learn more about best practices in member business lending, check out our webinar on Going Beyond the Business Loan:  Providing Business Services to Your Members.