Credit unions that have already taken advantage of the new member business lending rules say the less restrictive regulation definitely provides some real growth opportunities—but it also puts even greater responsibility on credit unions to know their stuff.

“It shifts the onus to manage portfolio risks onto the credit union, which is good,” said Ron Felder, EVP and chief lending officer for $3.4 billion Redwood Credit Union, Santa Rosa, Calif. “There are areas that used to require a waiver that no longer apply. Not requiring a personal guarantee has allowed for some growth. Certainly there is a lot of relief for smaller credit unions and will allow them to get into member business lending, but that remains to be seen.”

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