Is there a requirement for credit unions to have a commercial lending policy if they offer member business loans?

When credit unions offer member business loans, it is indeed a regulatory requirement for them to have a commercial lending policy. This policy must be adopted and regularly reviewed by the Board of Directors, ensuring that the credit union's approach to business lending is well-defined and compliant with applicable laws and regulations.

This requirement helps establish clear guidelines for the underwriting, approval, and management of business loans, which can be riskier than standard consumer loans due to the complexities involved in business operations and the potential for larger loan amounts. By having the Board of Directors involved, it underscores the importance of oversight and strategic decision-making in the lending process, aligning with sound governance practices.

In the context of the other choices, while some may suggest various levels of necessity, none fulfill the specific regulatory obligation that mandates a documented and reviewed policy as part of sound business practices in commercial lending within credit unions.