#GAC2025
I was excited to attend the America’s Credit Union Government Affairs Conference (GAC) this March. This event was a perfect opportunity to hear directly from credit union lenders about the challenges they face and how they’re navigating today’s financial landscape.
At the GoDocs booth, we had insightful conversations with industry professionals, but I also had the chance to sit in on two impactful sessions: Cross-Disciplinary Perspectives: Expert Insights on Today’s Credit Union Challenges and Fueling Growth: The Future of Commercial Lending in Credit Unions. These discussions, combined with the buzz of the conference, shed light on the key issues credit unions are tackling in 2025 and led to a few observations.
Observation 1: Advocacy and Community Building
The economic environment this year remains uncertain, and credit unions are feeling the pressure. One of the most pressing concerns is the potential loss of their nonprofit status, which would introduce taxation and significantly impact their ability to serve their communities.
Credit unions strongly believe that taxing them like traditional banks would be detrimental to both their operations and for their members. Higher costs could lead to increased fees, lower savings rates, and higher loan rates, making affordable financial services less accessible. This could be especially harmful to underserved communities that rely on credit unions for financial stability. This is the case for consumer as well as commercial lending and banking.
Observation 2: Balancing Business Growth and Community Impact
Credit unions face the ongoing challenge of balancing strong business decisions with their role as community pillars. Many are recognizing that commercial lending, specifically investments in businesses and commercial real estate, can be a powerful tool for both revenue growth and community revitalization.
Of course, with opportunity comes risk. Credit unions must manage credit risk (borrower defaults), concentration risk (overexposure to one sector), and liquidity risk (ensuring they have enough cash on hand). Without specialized expertise and resources, the potential for financial missteps increases.
However, the benefits are compelling. Commercial lending allows credit unions to expand their lending portfolios, increase profitability, and forge deeper relationships with local businesses. By diversifying their offerings, they can strengthen their financial standing while actively contributing to economic development in their communities.
Observation 3: The Small Business Lending Opportunity
One of the biggest areas of opportunity for credit unions is small business lending. Many small businesses struggle to secure loans from traditional banks, and credit unions are uniquely positioned to fill this gap. With personalized service, competitive rates, and lower fees, they can provide entrepreneurs with the financial support needed to thrive.
Credit unions can also leverage their deep community ties to target underserved industries like contractors, landscapers, plumbers, and electricians, who often face hurdles in accessing financing. Partnering with the Small Business Administration (SBA) is another strategic move, allowing credit unions to offer government-backed loans that provide favorable terms for small businesses.
At the conference, newly appointed SBA Administrator Kelly Loeffler emphasized this potential, telling attendees that credit unions must “revive the American dream on Main Street.” This sentiment underscores the crucial role credit unions play in empowering small businesses and driving local economies forward.
What’s Next? Changing the Narrative on Commercial Lending
To fully embrace commercial lending, credit unions must shift how they communicate about it. Too often, they are seen solely as institutions for personal banking, missing opportunities to position themselves as essential partners for local businesses.
The conversations at #GAC2025 made one thing clear: credit unions have both the opportunity and responsibility to evolve. This event was an eye-opening experience. It provided me with valuable insights into how credit unions navigate challenges while staying committed to their communities. By leveraging commercial lending, they can support small businesses, enhance financial stability, and continue to be a vital force in their communities. Now is the time to reshape the narrative and embrace the future of credit union lending.
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