HERNDON, Va. and SCOTTSDALE, Ariz. (4/14/14)--Northwest FCU, with $2.5 billion in assets, Herndon, Va., has purchased substantially all of the assets of Park Place Equity, a Scottsdale, Ariz.-based business finance group specializing in government guaranteed loans.
Park Place will continue to do business under its Park Place Equity brand as a division of Northwest FCU.
"Over the past two years, Northwest Federal has been developing a government lending platform to serve the needs of our business members," said Chris McDonald, president/CEO of Northwest FCU. "By adding Park Place and the company's expertise to our existing platform, we immediately gain a nationally known brand and substantial, additional experience in this lending field. We expect this acquisition to significantly enhance our member business lending (MBL) products and services and to provide high-quality loan assets to our loan portfolio, thereby strengthening the credit union for all our members."
Park Place Equity specializes in the origination of loans under the Small Business Administration's 7a and 504 lending programs along with the U.S. Department of Agriculture's Business and Industrial lending program.
The Credit Union National Association (CUNA) and credit unions are urging Congress to increase credit unions' MBL cap to 27.5% of assets from 12.25%. CUNA and credit unions say that increasing the 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.