Bringing small businesses and credit unions together to expand awareness about federal programs to develop small business is the aim of a joint regulator program unveiled Tuesday.
The National Credit Union Administration (NCUA) said it has entered into a joint agreement with the Small Business Administration (SBA) to take initiatives over a three-year period aimed at helping credit unions better understand and make use of SBA-backed loans and resources, the credit regulator said in a release. These initiatives may include webinars, training events, and media outreach, NCUA said.
According to NCUA, commercial lending by federally insured credit unions has grown in recent years, reaching more than $71 billion in commercial loans outstanding at the end of last year. SBA reported that,nearly 200 credit unions have participated in the SBA loan guaranty program since October 2017.
“The credit union mission is grounded in the concept of providing affordable financial products and services tailored to meet their member’s needs, and that includes helping Americans start or expand businesses,” NCUA Board Chairman Rodney Hood said in a statement. “Credit unions are well-situated to understand and work with their local businesses and entrepreneurs to extend affordable credit.”