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Our Market
Our Focus
We primary focus on small to medium size credit unions and community banks. We believe our services are particularly valuable to financial institutions in the following circumstances:
- Start up of New Business Operations, i.e. commercial lending operations
- Starting an SBA Department
- Unforeseen or Seasonal Loan Demand
- Limited Loan Processors
- Backup Coverage
- Inexperienced or Untrained Personnel
The Credit Union Commercial Lending Opportunity
Credit unions now have an opportunity to serve their small business members. With the changing global economy, many credit union members have faced the loss of their jobs, their companies, and sometimes, even their own industry. Many suffering these consequences have turned to forming their own small businesses and credit unions are looking to assist them.
The Credit Union Membership Access Act of 1998 made important changes to the Federal Credit Union Act affecting all federally insured credit unions and permitting them to make member business loans. Credit Unions were authorized to make in an aggregate amount equal to the lesser of 1.75 times the credit union's net worth or 12.25% of the credit union's total assets. This limit applies to both Federal and federally insured state credit unions. Then in February of 2003 the Small Business Administration reinterpreted its rules to enable almost all credit unions to participate in its flagship 7(a) loan guarantee program. Seven months later the NCUA authorized credit unions to make unsecured loans to commercial borrowers and permitted 100% financing of loans secured by heavy vehicles such as trucks and tractors.
NCUA estimates that only 1,600 to 1,700 of the nation's 10,000 credit unions are currently involved in business lending, and that such loans account for only 3% to 4% of their assets. Although many credit unions have expressed an interest in providing commercial lending to their members, the great majority lack experienced commercial lenders, commercial lending business processes, underwriting capability, document processing and loan serving. Entry costs constitute a significant barrier for small and medium credit unions.
eDocs-Express is now here to help you fulfill these needs!
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