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Credit Unions Seek Greater Flexibility in Business Lending

By July 18, 2015 No Comments

A recent article by Mark Sanchez published in MiBiz, discusses a proposed change in federal regulation that may change how credit unions structure business loans. Proposed by the National Credit Union Administration, this change would essentially allow greater flexibility in business lending through credit unions. Key changes in the proposal include:

  • Allowing credit union loan officers to waive personal guarantees on member business loans,
  • Removing the 80 percent loan-to-value limits for collateral, and
  • Raising limits on construction and development loans.

While credit unions are looking forward to more latitude while structuring a deal, many banks oppose the proposed regulation changes, claiming Congress enacted lending caps for good reason.

For more information on credit unions and business loans, please visit the referenced article by Mark Sanchez in MiBiz, or contact Patrick Mutchler at or (231) 726-5870.