In one sentence
A commercial loan made by a credit union to a member, subject to NCUA rules including an aggregate cap relative to assets.
The longer version
MBLs let credit unions serve business members, within regulatory limits that cap aggregate commercial exposure and shape underwriting. The cap is a major reason credit unions participate loans out.
MBL rules drive both the concentration management and the documentation standards that show up in credit union closing files.
Common questions
- What is a member business loan?
- A commercial loan made by a credit union to a member for a business purpose, subject to NCUA rules including an aggregate limit tied to the credit union's net worth.
- Are commercial real estate loans member business loans?
- Many are, though some loans, such as those secured by a member's primary residence, are excluded. The NCUA's definitions determine which count toward the cap.
- Why does the member business loan cap matter?
- Because loans counting toward it limit how much commercial lending a credit union can do, which affects whether it sells participations or holds loans.
Keep reading
- Running commercial lending operations at a credit unionLean teams, participations, and NCUA.
- Loan participations: a working guideLead and participant, document flow, ongoing obligations.
- The due diligence checklist, built to be runChecklists as systems, not documents.
- Commercial loan softwareWhere this sits in the lending stack.