The credit union industry has legislation in Congress to increase the lending caps on business loans up to 27.5% of assets. The credit union is not a perfect entity, but they would be flexible via the increase in the lending caps to be a competitor to the commercial banking market who has a new core business model that does not include making consumer or business loans in the communities. The credit union could fill the gap to provide the necessary credit for small business owners to obtain the financing needed to expand and create jobs, but the uncertainty in the political arena and confidence in the banking system is killing the organic growth needed to help restore a real recovery to the economy. A full disclosure, my professional experience has been in commercial banking and the credit union industry. My forte is commercial and consumer lending, and I realize the current needs in the marketplace. I am in shock the leadership of the credit union … [Read more...]
