The NAFCU Journal September-October 2019 - 14

may be an excellent, or even preferred,
SBA lender but have to scale back participation in SBA programs as they approach
the arbitrary cap," Jansen notes. "We urge
Congress to support legislation to provide
relief from the arbitrary cap on credit
union member business lending."
Such ongoing advocacy is critically important to ensuring credit unions remain active
partners with every segment of their membership, including small businesses.

services, and making it easier to obtain
capital," he says. "NAFCU promotes
testimony from credit unions and continuously promotes the much-needed credit
union movement through the SBA."
Perhaps one of the biggest SBA thorns
in the side of credit unions - one that
is regularly monitored and addressed by
NAFCU - is the government's arcane
approach to limiting the amount of
funds credit unions are allowed to lend
to commercial borrowers.
Gail Jansen, vice president of business services and operations for Southern California-based Kinecta Federal Credit Union,
testified on NAFCU's behalf before the
House Small Business Committee of the
Subcommittee on Economic Growth, Tax
and Capital Access in April. "When Congress passed the Credit Union Membership Access Act (CUMAA)," Jansen said,
"it put in place restrictions on the ability
of credit unions to offer member business
loans. ... Congress codified the definition
of a member business loan and limited
each credit union's member business
lending to the lesser of either 1.75 times
the actual net worth or 1.75 times the
minimum net worth of a well-capitalized
credit union [12.25 percent]."
Business loans above $50,000 count toward
that cap. However, Jansen points out that
this arbitrary threshold was established
in 1998 and has never been adjusted for
inflation. "What cost $50,000 in 1998 costs
$77,500 today," she testifies. "That is more
than a 55 percent rate of inflation change
that is completely ignored by current law
14

and greatly hamstrings a credit union's
ability to meet its members' needs."
While the government-guaranteed portions of SBA loans do not count toward
the member-business-lending cap - typically 75 percent of the value of a 7(a) loan,
according to Manger - the nonguaranteed portions do. "This could ultimately
lead to a situation where a credit union

"Small-business borrowers don't automatically think of credit unions when they're
looking for a loan," Merz says. "They
look at banks. Credit unions have to
make it known that they are commercial
lenders. And they have to promote the
fact that they do SBA loans. Experienced
lenders will get out there, connect with
the community and spread the word."
Robert Bittner is a Michigan-based freelance journalist.

A Second Look at
the SBA
I

f your credit union considered working
with the Small Business Administration
for small-business lending years ago and
decided it wasn't right for you, the SBA's
William Manger thinks you should give it
another look.
"Today's programs are completely automated and efficient," says Manger, associate administrator of the SBA's Office of
Capital Access. "We've cut approval times
in half for loans up to $350,000; they can
be approved in a couple of days. Large
loans can be approved within seven
days. We've become much more efficient
in the last five years."
Manger stresses that technology has
evolved as well, making it easier for
credit unions and other lenders to navigate the loan process. "We've introduced

SBA One, which steers lenders through
the loan process step by step, which
can be helpful for lenders who don't
normally do SBA loans. We've also
introduced Lender Match, which allows
a small-business owner to go to our
website and put in the details of what
they're looking for in a loan. If you're an
approved SBA lender, the site will send
that potential borrower's information on
to you for follow-up. It allows electronic,
free-of-charge referrals."
Manger says the SBA welcomes the
opportunity to partner with new
credit unions that would like to begin
SBA-guaranteed lending. "We've done
a lot to make it easy for new lenders to
come into the program," he says. "Reach
out to your local SBA district office or
headquarters. We're happy to help."

THE NAFCU JOURNAL  SEPTEMBER-OCTOBER 2019



The NAFCU Journal September-October 2019

Table of Contents for the Digital Edition of The NAFCU Journal September-October 2019

The NAFCU Journal September-October 2019
Contents
Conferences
From the Chair
Washington and Industry Briefs
The Bottom Line
Access to Money
The Best Indirect Growth Strategy
Big Moments, Bigger Wallet Share
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
Industry Perspectives
From the President’s Desk
The NAFCU Journal September-October 2019 - The NAFCU Journal September-October 2019
The NAFCU Journal September-October 2019 - Cover2
The NAFCU Journal September-October 2019 - Contents
The NAFCU Journal September-October 2019 - 2
The NAFCU Journal September-October 2019 - Conferences
The NAFCU Journal September-October 2019 - From the Chair
The NAFCU Journal September-October 2019 - 5
The NAFCU Journal September-October 2019 - Washington and Industry Briefs
The NAFCU Journal September-October 2019 - 7
The NAFCU Journal September-October 2019 - The Bottom Line
The NAFCU Journal September-October 2019 - 9
The NAFCU Journal September-October 2019 - Access to Money
The NAFCU Journal September-October 2019 - 11
The NAFCU Journal September-October 2019 - 12
The NAFCU Journal September-October 2019 - 13
The NAFCU Journal September-October 2019 - 14
The NAFCU Journal September-October 2019 - 15
The NAFCU Journal September-October 2019 - The Best Indirect Growth Strategy
The NAFCU Journal September-October 2019 - 17
The NAFCU Journal September-October 2019 - 18
The NAFCU Journal September-October 2019 - 19
The NAFCU Journal September-October 2019 - 20
The NAFCU Journal September-October 2019 - 21
The NAFCU Journal September-October 2019 - 22
The NAFCU Journal September-October 2019 - 23
The NAFCU Journal September-October 2019 - Big Moments, Bigger Wallet Share
The NAFCU Journal September-October 2019 - 25
The NAFCU Journal September-October 2019 - 26
The NAFCU Journal September-October 2019 - 27
The NAFCU Journal September-October 2019 - 28
The NAFCU Journal September-October 2019 - 29
The NAFCU Journal September-October 2019 - Executive Spotlight
The NAFCU Journal September-October 2019 - 31
The NAFCU Journal September-October 2019 - Management Insight
The NAFCU Journal September-October 2019 - 33
The NAFCU Journal September-October 2019 - Compliance Central
The NAFCU Journal September-October 2019 - 35
The NAFCU Journal September-October 2019 - Inside NAFCU Services
The NAFCU Journal September-October 2019 - 37
The NAFCU Journal September-October 2019 - 38
The NAFCU Journal September-October 2019 - 39
The NAFCU Journal September-October 2019 - Industry Perspectives
The NAFCU Journal September-October 2019 - 41
The NAFCU Journal September-October 2019 - 42
The NAFCU Journal September-October 2019 - 43
The NAFCU Journal September-October 2019 - From the President’s Desk
The NAFCU Journal September-October 2019 - Cover3
The NAFCU Journal September-October 2019 - Cover4
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