05/06/2024
In a recent podcast interview, I shared my expertise on how to create a successful business lending program for a credit union, highlighting the growing trend of credit unions expanding their reach through commercial bank acquisitions. My experience in developing Avadian Credit Union's program in 2011 has given me a unique perspective on this trend. With credit unions collectively lending over $43 billion to businesses across the country, and reporting a 25% annual increase in business loans during 2022, the demand for such services is clear. However, the current rise in interest rates has led to a shift, with more small businesses seeking loans from SBA lenders or online private lenders. This presents an opportunity for credit unions and banks to offer government guaranteed sba lending services, allowing them to mitigate risk while maintaining their customer base. As larger credit unions take notice and compete with bigger banks, specialized staff and loan monitoring capabilities become essential for financial institutions looking to thrive in this market. As a certified and trained SBA and Commercial lender, I’ve been able to share my knowledge and understanding of both programs. In 2011, as many CU’s were beginning to offer business lending, I was asked, “So what made you decide to accept this challenge and why did you chose Avadian CU?”
I responded:
“ I have been in banking for 20 years and the worst period during that time was the financial crisis of 2008. Instead of helping people, the market shifted into not renewing loans forcing businesses that had been in operation for more than 50 years to close their doors. It was important to me that I find a company with a leader who could weather the storms and still have the desire to grow without reservation. Avadian Credit Union and CEO Linda Cencula checked both boxes. I researched the companies success and was more than impressed. She was one of the few CEO’s that was able to maintain a 5 star Bauer rating during 2008-2011. As the rest of the FI’s were trying to dig their way out of the trenches, Linda saw an opportunity to expand on the high demand for small and investment business lending. I knew that I wanted to be a part of that and I was inspired by her drive to succeed. She is a leader who sees an opportunity and goes for it. The business program now makes up almost $200 million of Avadian’s total assets.”
