Jan. 23, 2006


  • It puzzels me why Credit Union have not embraced SBA Lending. SBA Lending is not rocket science. It is a matter of making a committment to the lending program. Understanding, the benefits it provides to business owners. SBA lending is an excellent product and enables a credit union to cross sell other products. Most Credit Unions do not understand the benefits of this program to their institution. Unfortunately there are just a few sources to truely learn about the program. In addition, many credit unions are choosing the CUSO model for business lending. Many of the CUSOs do not have SBA capability. With the declines in consumer lending trends Credit Unions should add SBA Loans to their product list. Credit unions need to focus on protecting their market share from the competition. If I were a member of credit union and needed the long term benefits of an SBA loan and my credit union could not provide that I would more likely go to the local bank in the area. They would insist that my accounts be establised at the bank.