May 02, 2022

NAFCU amplifies CU small business efforts

small businessToday marks the first day of the Small Business Administration’s (SBA) National Small Business Week. Across the country, small businesses play an integral role in creating jobs and fueling the economy and have shown resilience throughout the pandemic. NAFCU President and CEO Dan Berger, along with the entire association, offers appreciation for small businesses - one of the credit union industry’s most important members. 

“As we celebrate National Small Business Week, NAFCU applauds the credit union industry’s efforts to help keep the nation’s small businesses thriving, especially as we recover from the pandemic,” stated Berger. “NAFCU has always been a leading advocate for the credit union industry and we continue to fight to ensure the voices of credit unions, and their small business members, are heard by lawmakers.”  

NAFCU has worked tirelessly to advocate for legislation and regulation that will help the credit union industry better serve Main Street small businesses. The association’s efforts include:

  • sharing support to bolster small business lending through the Member Business Loan Expansion Act, which would make it easier for credit unions to offer smaller business loans under $100,000 by ensuring these loans do not count toward the arbitrary credit union member business lending (MBL) cap;
  • calling for changes to the CFPB’s section 1071 rule, a costly and burdensome rule which would require credit unions and credit union service organizations that originated at least 25 covered small business credit transactions in each of the two preceding calendar years to collect and report small business credit application data, including data related to the ethnicity, race, and sex of small business applicants' principal owners;
  • backing the S.4004, The Small LENDER Act, crucial legislation that would provide relief to small business and lenders from the CFPB’s section 1071 data collection rule; 
  • opposing the SBA’s direct lending proposal, which could lead to issues with fraud and defaults, and potentially dissolve existing credit union-small business lending relationships; and 
  • establishing a Small Business Lending Working Group to help credit unions and NAFCU’s advocacy team discuss small business regulatory issues and develop sound solutions to those issues. 

This week we are excited to celebrate all that credit unions do for the small business community. NAFCU remains engaged with Congress and financial regulators to push for ways credit unions can continue to serve small business members.

Neighbors FCU uplifts the Greater Baton Rouge small business community

See how one credit union in Louisiana helped support their local communities through the COVID-19 pandemic and hurricane IDA (story submitted by Neighbors Federal Credit Union.)

Neighbors FCU has worked with small businesses in the Greater Baton Rouge area get through COVID challenges and impacts from hurricane IDA August 2021.  One business was heavily impacted by COVID and sought out PPP loans and loan payment deferments. When that local business started reopening and getting back into the swing of things, Hurricane IDA damaged the roof of one of their buildings causing it to be closed for four more months.  Loans from our credit union helped them to get them through these times and allowed them to get back to full operation.

Neighbors FCU also helped another business owner develop a much-needed 55+ retirement trailer park development through a permanent loan to give affordable housing options within the local community.

In another instance, a local business owner expanded their family-owned playground equipment installation company. With the increased demand in the community for these services, Neighbors FCU provided additional NFCU loans to allow the husband- and wife-run business expand and take on larger jobs.

In addition, a local non-profit needed a loan to purchase a warehouse building to expand services.  The non-profit provides Disabilities Awareness Training, Vocational and Transition Services, and Day Habitation Programs to help individuals with disabilities find meaningful employment, as well as Respite Care to give relief to family members and caregivers. Neighbors FCU helped them to purchase and renovate the new building and expand their services to another area of Baton Rouge.

Neighbors FCU is committed to helping the financial needs of small businesses in the Greater Baton Rouge community through challenging times and good times.