Five reasons to increase SBA loan origination at your credit union
Credit unions can leverage the technology and experience they acquired during the Paycheck Protection Program era by pivoting to other SBA loan programs.
In a recent survey of more than 250 bankers representing banks and credit unions, 61% of respondents said their financial institution plans to maintain or increase Small Business Administration loan origination this year and beyond.
With the Paycheck Protection Program lending window closed, are there benefits for credit unions that increase participation in ongoing SBA loan programs? Here are five reasons, according to industry experts.
1. SBA loan origination can leverage PPP tech, experience to expand relationships. Many financial institutions implemented or upgraded technology to help them offer PPP loans during the pandemic. These lenders could be looking to leverage those SBA technology investments and the SBA experience they gained to develop or solidify member business relationships. Remember: PPP lenders that were not already authorized to make loans under the 7(a) and other programs before the PPP will need to execute new loan agreements with the SBA.
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