CU's business loans go for 'small stuff'
SAN ANTONIO, Texas (10/11/06)--Security Service FCU, based in San Antonio, has some satisfied small-business members, according to an article about the credit union's venture into Small Business Administration (SBA) loans.
It has offered small business loans since 1995, and in February 2004, it started offering Small Business Administration (SBA) loans.
Today it is one of six credit unions in Texas offering SBA loans. Ranked No. 1 in the state, Security Service FCU is 15th out of 98 in the nation offering the program, John Worthington, spokesman for the credit union, told San Antonio Express-News (Oct. 10)
Last year it was designated an SBA Express Lender to offer revolving lines of credit. Recently it became an SBA preferred lender, which enables it to process loans quickly and efficiently.
"For the most part, it's small stuff that a lot of big lenders don't want to fool with," Worthington said.
The newspaper talked to the owners of two businesses who received their loans at the credit union.
Texas Trophies owners Lorraine and Jesse Pope are using a $285,000 small business loan to double the size of their shop. In 1993, when they got a loan from a bank to build their shop, they had to jump through many hoops, Lorraine Pope told the newspaper. "This one was much easier; we just filled out some loan paperwork."
Kathy Courtney, a former hairdresser, was told by a bank that she must borrow a minimum of $200,000 to open a bridal boutique. Instead, she went to the credit union. She prepared a simple business plan, providing a biography, demographics on her target market, a breakdown of how she would spend the money and an essay on why she wanted to go into the business. She had $30,000 in savings to invest. Security Service loaned her $93,000, and her shop will open next month.
Compared with banks, the credit union's business loans are modest. Since it began SBA loans, Security Service has provided $5.7 million in the loans. Wells Fargo's branches in the area do almost that much volume in one quarter, the article said.
More CU/System
News Now LiveWire
- Iowa Gov. Terry Branstad credited Dupaco Community CU for its role in helping an Iowa small business grow and create jobs. - 3 hours ago
- Iowa Gov. Terry Branstad visits Dupaco Community CU, notes CU's role in helping small bizzes grow & creating jobs in state. - 4 hours ago
- Gunman killed Friday in shootout w/ police outside PBC CU, West Palm Beach, Fla., I.D.'d as Christopher Brown, 18. No one hurt inside CU. - 4 hours ago
- In Wash Post article on ?end of Fannie and Freddie,? CUNA?s Hampel says CUNA, CUs are working on contingency plans. http://t.co/bzmi57mY - 5 hours ago
- John Bell, an employee of NC Community FCU, has announced his candidacy for the NC House of Representatives. - 3 days ago
- See all our Tweets and sign up; News Now LiveWire on Twitter
