Loan Participations Are Big Business – with Bill Paton of Alloya Corporate Credit Union

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Episode Summary

In this episode of With Flying Colors, I’m joined by Bill Paton, SVP at Alloya Corporate Credit Union, to discuss how Alloya’s loan participation platform surpassed $3 billion in transactions and how this solution is helping hundreds of credit unions manage liquidity, compliance, and balance sheet risk.

Bill shares the backstory of how the program evolved from a handful of deals to a fully integrated, end-to-end platform—and how corporates like Alloya are uniquely positioned to support the credit union system.

Key Takeaways

• Over 600 credit unions are on Alloya’s loan participation platform, with a buyer-to-seller ratio of approximately 4:1.

• The system was built by credit unions, ensuring compliance with NCUA participation loan rules while streamlining the due diligence process.

• Corporate credit unions like Alloya can step in as a buyer to help credit unions manage liquidity when market demand softens.

• Participation loans are no longer just for large institutions—credit unions as small as $15 million in assets are participating to control balance sheet growth.

• The platform automates payments, reporting, and post-close processes—making it easier for credit unions to manage ongoing investor relationships.

Guest Quote

"This is the first end-to-end loan participation platform built by the credit union industry, for the credit union industry."— Bill Paton, SVP, Alloya Corporate Credit Union

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