... which is it?
Hope yesterday's post [link] was enough to convince folks that business accounts are - and have long been - available through North Carolina credit unions. Wasn't the original idea behind most N.C. credit unions; and most like SECU, chose to remain focused on the much greater challenge - serving well, the individual member.
You might also like to know that SECU and most credit unions have always made some "business loans" in N.C. Most small business entrepreneurs "start small" as a second job, gig or hustle. Those "start ups" are financed almost always by personal credit cards or perhaps a home equity loan. These personal lines of credit are in reality small business loans, but no one - including the banking industry - makes a big deal out of them.
In fact, credit union regulators don't require that any loan less than $50,000 - regardless of purpose - be reported as a "business loan". Nobody has told you that have they.
✅ So why all the controversy on the wide open expansion of commercial/corporate lending in H.187? Why are many traditional credit union advocates - and the banking industry - so concerned?
✅ Because they see what is happening with credit unions nationwide!
❋ As of December 31, 2024, there were 4,455 federally insured credit unions [down from a peak of 23,000 CUs] with 142.3 million members.
❋ Credit card balances grew by $3.2 billion, or 3.9 percent, to a total of $85 billion at the end of 2024.
❋ New auto loan balances declined by $11.1 billion, or 6.3 percent,
to a total of $164 billion at the end of 2024..
❋ Used
auto loan balances contracted by $5.5 billion to a total of $317 billion at the end of 2024.
❋ Commercial loans excluding unfunded commitments increased $16.8 billion, or 10.7 percent, over the year to a total of $174 billion at the end of 2024.
😎 Are you surprised that nationwide credit unions have made more commercial loans [$174 million] than credit card loans [$85 million] to 142.3 million credit union members?
😎 Are you surprised that nationwide credit unions have made more commercial loans [$174 million] than new car loans [$164 billion] to 142.3 million credit union members?
😎 Are you surprised that nationwide credit union commercial lending is growing four times faster (10.7%) than total credit union lending (+2.6%)?
... is this what you want North Carolina credit unions to become?
