In its February edition, NJ Business Magazine spotlights New Jersey credit unions’ ability to make small-sized loans and provide other valuable business services to small businesses in the state.
In the article, titled “Credit Unions Lend Small Businesses a Helping Hand”, NJCUL President/CEO Greg Michlig points out that the key difference between credit unions and banks is that an individual joins as a member as opposed to just being a customer, which gives them a voice as part-owner. Though not anyone can join any credit union, Michlig points out that “there are certainly credit unions out there for everyone.”
One example is XCEL FCU, who is featured in the article for recently becoming a Small Business Association (SBA) lender, meaning it can lend to small businesses with the backing guarantee from the SBA. “For a business owner who doesn’t have the best credit or doesn’t have a lot of experience and is just trying to get a start-up business up and running, he or she can apply for an SBA loan, which may be their best bet,” explains XCEL FCU VP and COO Marianne Pulice.
Credit unions in general look at the “bigger picture” when lending to members with small businesses, as explained by Megan Shull, Business Development Officer at First Financial FCU. Shull also mentions that credit unions tend to provide smaller loans that larger institutions “may not even take a second look at.”
Andy Jaeger, President/CEO of Credit Union of New Jersey, says the minimum loan his credit union will approve for a small business is approximately $10,000. “Our focus is small business loans that help businesses get up and running or help them expand,” he says.
The article goes on to explain the arbitrary member business lending cap of 12.25% of a credit union’s assets.
Click here to view the article in its entirety.