Member Business Services home page
About the MBS Task Force
6.8 million small offices and home offices in the United States have
incredible potential to generate significant revenue due to their personal
and business financial services needs. Yet only 14.2% of the nation's
11,000 credit unions offer member business loans, with an additional 2.2%
providing agricultural MBLs
(larger credit unions are much more likely to offer member business
The OCUL Services
Corp. Member Business Services Task Force and the Ohio Credit Union League
provide the resources on this page to help you make Member Business
Services decisions. If you need more help, please contact Dave Shoup, Director of
Research & Information, at (800) 486-2917.
|| Kent CU
The Small Business Administration's website provides comprehensive
information for people who want to start their own small business.
Find it at www.sba.gov.
|| River Valley FCU
|| Ackerman CU
|| Century FCU
|| Western CU
|| Hopewell FCU
|| Community One CU of Ohio
|| Greater Warren Community FCU
|| CODE CU
TeleCommunity Credit Union
|| Mead ECU
Review the Task Force
OCUS liaisons: Paul Mercer,
Dave Fearing, Kim Stamps, Mike Gaylord,
| Working with a
small business owner? Recommend this comprehensive site: www.BusinessLaw.gov
Member biz lending is
booming at credit unions in 2003
(Oct. 1, 2003) -- According to Callahan & Associates, member business
lending is booming at credit unions.
lending has been the growth king for credit unions since last June, with
balances rising over 26% to $8.3 billion. As of June 30, over 1,630 credit
unions reported member business loans on the books, with 228 credit unions
starting programs over the past year. These credit unions had, on average,
$118 million in assets, a 1.14% ROA, and $5 million in MBLs outstanding.
The higher balances ($111K on average), greater community visibility, and
improved relationships are all helping these credit unions increase their
returns and boost their member value.
NCUA Board expands member business
services options for credit unions
(Sept. 25, 2003 - from
CUNA News Now)
-- The NCUA Board on Sept. 24 unanimously approved as a final rule a
new member-business loan (MBL) regulation, expanding credit unions'
Among other things, the new MBL regulation:
Amends construction and development loan
equity requirements to require 25% (35% previously) borrower equity;
Authorizes highly capitalized RegFlex-designated
credit unions to establish individual policies regarding whether to
require personal guarantees by principals and the amount of such
Authorizes well-capitalized credit unions to
make unsecured MBLs within certain regulatory limits and restrictions;
Provides that purchases of non-member loans
and non-member participation interests do not count against a credit
union's aggregate MBL limit. This is subject to an application and
approval process that will include safety and soundness reviews;
Allows 100% financing on certain business
purpose loans secured by vehicles;
Provides that loans directly to other credit
unions and credit union service organizations (CUSOs) are not classified
Clarifies and streamlines MBL documentation
Amends the prompt corrective action (PCA)
rule regarding the risk weighting of MBLs; and
Authorizes federal credit union investment
in CUSOs that originate business loans, subject to certain regulatory
NCUA Chairman Dennis Dollar said issuing
new MBL rule is "a timely and necessary update" that will result in
more start-up entrepreneurial capital being available for small business
and greater safety and soundness diversification in credit unions' lending
portfolios. "This is a well balanced regulation which clearly recognizes
the statutory restrictions on member business lending by credit unions,
but empowers financially strong credit unions with solid underwriting
standards in place to reach out to more budding entrepreneurs in their
fields of membership."
Services Education Opportunities
None currently. Please check back.
on Member Business Services
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service as noted on Research
Changing Nature of Small Business and SOHO Relationship Management
Small businesses have
become an extremely important segment within the financial services
industry. As a result, managing the small business relationship --
once a simple, straightforward process -- has become a much more
complicated task. Read the full abstract.
Business and SOHO Technology Ownership and Usage Behavior
Small businesses are
increasingly incorporating the Internet into their daily business
operations and are using this medium for financial transactions. As
FSIs continue to struggle with how to make the Internet work for them,
one fact is clear: Technological change is rapid, and FSIs need to
reevaluate the way they conduct business or they risk obsolescence.
Read the full abstract.