As small business loans from banks are harder and harder to come by, the stimulus package notwithstanding, one source seems to have escaped the issues being experienced by the banking industry; that source is credit unions. It turns out that credit unions weren’t involved in the sub-prime lending that has turned the banking industry upside down so they have money – and willingness – to lend to small businesses. According to the Credit Union National Association, the amount of business loans was up 18% last year and the average loan size is about $215,000 – and they’re even making loans to startup businesses. However, borrowers will still have to prove credit-worthiness. In most cases, they will be required to verify their income with tax forms, pay stubs and other forms.
There is an excellent article recently published by the Wall Street Journal which details this increased lending trend by credit unions; the article can be found at http://online.wsj.com/article/SB123603579028714219.html . Check out the article, then check with your credit union to see if a small business loan is an option for your company!
The author, Linda Daichendt, is Founder, CEO and Managing Consultant at Strategic Growth Concepts, a consulting firm specializing in start-up, small and mid-sized businesses. She is a recognized expert with 20+ years experience in providing Marketing, Operations, HR, and Strategic planning services to start-up, small and mid-sized businesses. Linda can be contacted at firstname.lastname@example.org and the company website can be viewed at www.strategicgrowthconcepts.com.