Delaware Credit Unions made their case for business lending to lawmakers and small business owners last week
The Small Business Caucus, sponsored by the Cooperative Credit Union Association (CCUA) and held at Legislative Hall in Dover, was part of the CCUA’s “Better Values.BetterBanking.” campaign. The effort is designed to heighten credit union awareness and provide information about the benefits of credit union membership to more than 235,000 (more than 25 percent ) of Delaware’s residents.
Paul Gentile, CCUA CEO, along with members of CCUA’s Delaware Advocacy Committee and credit union business lenders, shared that many of Delaware’s credit unions opted to fill the need of members that were often unable to secure business loans from the state’s traditional lenders, by offering member business loans (MBLs).
Since 2016, seven of Delaware’s credit unions have provided more than $51.5 million in business loans to more than 475 of their members, with the average loan coming in at just under $124,000. While that is not considered a huge amount by traditional banking standards, it means everything to the success of these business owners, credit union leaders stated.
The group also discussed business lending trends in Delaware, with expansion, working capital and equipment loans leading the list of small business owners’ needs.
According to credit unions, a more positive business outlook was being seen in Delaware, and businesses were beginning to hire more employees. It was also noted that more veterans are starting their own businesses upon retirement or separation from the military and that applicants with military backgrounds come fare well when it comes to underwriting standards for loans.
State Rep. Quinn Johnson, D- Middletown, thanked the credit unions for the enlightening discussion, adding that he considered credit unions “an awesome tool for the growth of small business in Delaware.” Rep. Mike Ramone (R- Chanterelle) concluded by inviting the credit unions to “let us know what we can do to help” with the regulatory burdens.
Touching on the topic of regulation, Gentile said recent executive orders seek to streamline federal agencies, such as the National Credit Union Administration, and require agencies to “remove two regulations for every regulation they add.” He stressed the need for more targeted relief.
He also pointed out that recent changes to the Home Mortgage Disclosure Act have gone beyond what was mandated in Dodd-Frank and will require collecting even more information from borrowers, even on home equity line of credit loans. He also expressed concerns for the privacy of borrowers. David Clendaniel, director of advocacy at Dover Federal Credit Union, pointed out that collecting the additional data required expensive software upgrades.
The meeting closed with business leaders in the room asking how to learn further about other products credit unions use. Gentile urged attendees to visit bettervaluesbetterbanking.com to learn about the advantages of credit unions.
