COMPTON, Calif. (12/19/12)--Mid Cities CU in Compton, Calif., provided truck driver Julio Contreras with a State Treasury California Capital Access Program (CalCAP) Air resources Board (ARB) loan.
Julio Contreras, a truck driver and member of Compton, Calif.-based Mid Cities CU, poses in front of his new truck that he was able to purchase with a member business loan provided by the credit union. (Photo provided by Mid Cities CU).
The loan from the $24.5 million asset credit union helped Contreras purchase a new truck to become compliant with transporting in and out of the Port of Los Angeles.
The State Treasury CalCAP program is a loan guarantee program that ensures loans are made to small businesses to assist them in growing their business. Loans can be used to finance the acquisition of land, construction or renovation of buildings, or the purchase of equipment, other capital projects and working capital.
The ARB's Heavy-Duty Vehicle Air Quality Loan Program provides financial assistance to truckers affected by the Statewide In-Use Bus and Truck Rule and the Heavy-Duty Vehicle Greenhouse Gas Emission Reduction Measure, said the credit union.
"I would have lost a lot of business, not being able to transport in and out of the port of Los Angeles, without the assistance from Mid Cities CU and the ARB," said Contreras. "Mid Cities made the application process easier for me by walking me through each step and acting as a liaison with the ARB, making sure my documents were in order, on my behalf."
The Credit Union National Association (CUNA) and credit unions are urging Congress to increase credit unions' member business lending (MBL) cap to 27.5% of assets from 12.25% so that more loans could be made to small businesses. CUNA and credit unions say that increasing credit unions' MBL cap would open up more opportunity to offer MBLs, inject $13 billion in business loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers.