November 14, 2019

How Credit Unions are Stacking Up in SBA Lending for 2019

Credit Unions have upped their lending game in recent years, expanding their reach beyond small conventional loans to include a variety of SBA loans for small businesses. With the help of lender service providers, like Capital Growth Solutions, more and more credit unions are able to offer SBA loans. We pulled the numbers to see how credit unions are stacking up in SBA lending in 2019.

As of July, credit unions accounted for just over $2 billion dollars in SBA loans, with the average total SBA loan value per credit union hovering around $5 million dollars and the median at $2 million dollars.

 

The number of loans per credit unions varies tremendously, with some closing only one loan while the max number of loans closed so far tops off at 400. The median number of loans however falls at just 6 loans.  

Participation by state also varies significantly, with the greatest number of credit unions providing SBA loans residing in Michigan, followed closely by California.

Commercial loans still outpaced SBA loans by a significant amount, with total SBA loan volume accounting for roughly 5% of total loan volume by all credit unions.

As the demand for business credit increases and credit unions learn to leverage lender service providers to expand their SBA loan offerings, we expect to see the number and value of SBA loans provided by credit unions to increase. 

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About Chuck Evans, CEO

Chuck has 30 years in commercial banking and economic development lending. Prior to joining Capital Growth Solutions, he was President, CEO and Co-Founder of PrudentLenders, LLC. after having previously served as Managing Director for Pennsylvania’s largest Certified Development Company: South Eastern Economic Development Company. Chuck has been an active supporter of small business and an active participant in the industry associations, National Association of Certified Development Companies (“NADCO”) and National Association of Government Guaranteed Lenders (“NAGGL”).

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