With the 2018 hurricane season just around the corner, a recent report from the Federal Reserve highlights how much competition credit unions face when it comes to lending to small businesses recovering from natural disasters.
Banks may need to do more to help small businesses after a hurricane, flood or other calamity as those firms tend to favor nonbank lenders after an emergency for a number of reasons, according to research by four regional Federal Reserve banks.
The House approved a five-year extension of the National Flood Insurance Program on Tuesday, but it remains unclear whether the Senate will seek to pursue its own bill. The program is due to expire Dec. 8.
Credit unions in both states have prepped offers for consumers who need to rehab their homes following this summer's hurricanes, but there are hurdles ahead, including rising competition and stringent regulations.
The devastation and loss credit unions saw following Hurricanes Harvey, Irma and Maria should be a wake call for all financial institutions to have respective disaster recovery plans in place, but oddly the opposite sometimes holds true.