May 13, 2016 the National Credit Union Administration announced that credit unions now have the ability, under certain circumstances, to make member business loans without requiring a personal guarantee. This change allows credit unions greater flexibility and autonomy to offer these loans in a safe and sound manner.
Most provisions for the member business lending rule will take effect on January 1, 2017.
Additional information can be seen on the NCUA site. Credit unions should visit the NCUA’s Small Business Lending Resource.
I am a partner in the Green Bay, WI, office of Hawkins Ash CPAs and joined the firm in 1998. I have extensive experience providing tax and audit services to individuals, commercial businesses and credit unions. I also provide business valuation and compilation and review services. I am a member of the firm's Audit and Accounting Committee.
