NCUA proposes rules to encourage SBA lending

Northwestern Financial Review, Aug 1-Aug 14, 2004

The National Credit Union Administration has proposed a rule designed to encourage credit unions to make loans guaranteed by the Small Business Administration. Last year, the SBA opened its guaranteed loan programs to credit unions. The proposed rule would exempt credit union "member business loans" from the NCUA's security and collateral requirements if the loans are guaranteed by the SBA.

The loans would be subject only to an SBA standard. The NCUA rule also would open SBA lending to state-chartered credit unions.