... one other observation!
✅ As you know, the major angst about credit unions in the banking industry centers on the growth in commercial lending. As you saw in yesterday's post [link] according to the NCUA, commercial lending by credit unions now exceeds $174 billion, topping both total credit card lending [$85 billion] and total new car lending [$164 billion] - that's all CU card/newcar loans for 142 million members!
Why would the banking industry argue against "small" business loans to help folks "get by" or get started - sounds pretty hard-hearted! Because that doesn't appear to be what's going on. Take a look:
✅ Here are the stats on commercial loans at the largest U.S. credit unions as of December, 2024:
NavyFed 1300 loans total balances: $820 million avg. loan amount: $630 thousand
SECU -0-
PenFed 455 loans total balances: $1.35 billion avg. loan amount: $2.96 million
Boeing 957 loans total balances: $3.27 billion avg. loan amount: $3.40 million
SchoolsFirst 88 loans total balances: $2.33 billion avg. loan amount: $ 2.80 million
😎... not exactly your small engine repair shop, lawn maintenance service, or Ebay start up.
✅ How about in North Carolina:
SECU -0-
Coastal 184 loans total balances: $174 million avg. loan amount: $945 thousand
Truliant 2400 loans total balances: $885 million avg. loan amount: $369 thousand
Allegacy 507 loans total balances: $361 million avg. loan amount: $712 thousand
Skyla 342 loans total balances: $280 million avg. loan amount: $819 thousand
... again not exactly a "small" lending business! **
😎 The banking industry has always felt that credit unions should not be tax-favored on these large commercial loans and that CUs cherry-pick the easy, real estate secured loans - and, of course, are unfairly, skimming off banking profits.
✅ By the way, two-thirds of all U.S. credit unions do not make commercial loans.
... that's what the "tax fight" is about! Who's right?
** CCUL's H.187 seems to be a "small business" sham show.
