NAFCU President and CEO Dan Berger and Small Business Administration Administrator Linda McMahon, on stage following McMahon's remarks before NAFCU's Congressional Caucus, signed a new Memorandum of Understanding yesterday aimed at improving access to credit union small-dollar loans to small businesses across the nation.
The agreement is intended to increase the number of credit unions offering SBA 7(a), 504 and Community Advantage loans to business members.
During her Caucus address, McMahon told the hundreds of credit union leaders in attendance that she is "proud to lead a team that helps entrepreneurs start, grow and succeed … and you, our lending partners, are a critical part of that mission."
McMahon noted that 99 percent of all businesses in the country are small businesses, and more than half the employees of businesses are either employed by small businesses or own small businesses.
She expressed hope that the MOU between NAFCU and the SBA "will help improve access to capital … for aspiring business owners who cannot get loans elsewhere."
Berger welcomed McMahon to the stage before her remarks Wednesday and rejoined her for the MOU signing. "NAFCU supports the SBA's efforts to help Main Street America and thank Administrator McMahon for her leadership," said Berger. "We are proud to continue this partnership to help more credit unions get needed capital to member small businesses and, in turn, drive economic growth and create jobs."
Credit unions' involvement in the SBA’s programs expand the accessibility of SBA products and ultimately strengthens small businesses. Credit unions stand to benefit from the reduction of their risk on small business loans and from increasing the financing resources available to their small business members.
Each SBA-guaranteed business-loan dollar from a credit union is excluded from the credit union’s member business lending cap.