Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
IEntrepreneurI CUs come to the rescue on biz loans
WASHINGTON (8/23/10)--When their bank slashed the credit limit on their business credit card despite on-time payments, the partners of WheretoFindCare.com, a Ypsilanti, Mich., healthcare information service, moved their accounts to a local credit union and found all the services the small business needed, according to Entrepreneur magazine (Aug. 20). There, they found all the services the small business needed, said the article, entitled, "Credit Unions to the Rescue?" Another small business owner, Tom Hoebbel of Brooktondale, N.Y., described how a loan from his credit union enabled him to expand his photography business to online video services. Hoebbel needed $25,000 to purchase new equipment and found the loan his county offered took too long. The credit union helped Hoebbel apply for an interim Small Business Administration loan. This let me move much more quickly [into Web-based video sales] than if I had to wait for the county loan, which ended up taking more than nine months," he told the publication. Hel decided to work with the credit union because of its free business checking services, which saves him $15 to $20 a month, and because if offered a 12-week business course to its small-business members. Credit union lending to members for business purposes is a fast-growing segment, up 10% in 2009, Pat Keefe, vice president of communications and media outreach at the Credit Union National Association (CUNA), told the publication. The average loan is $220,000 and credit unions are limited to lending 12.25% of their assets, but a measure in Congress would increase that limit and pour $10 billion in new loans into small businesses, he said. The level of personal service that Hoebbel got is a definite advantage of credit unions, said Keefe, who noted credit unions' lower rates and stringent lending standards. In 2009, credit unions had a lower charge-off rate in business loans than banks, 0.59% vs. banks' 2.36%, he added. CUNA provided other statistics for the article, and the article referred readers to CUNA's credit union locator. For the full article, use the link.
Other Resources

RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
1 Day ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
9 hours ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
10 hours ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
10 hours ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
11 hours ago