Credit Unions to Start Offering SBA Loans
Aspiring entrepreneurs who need capital now have more options when it comes to finding a potential lending institution. The Small Business Administration (SBA) announced last week that it has authorized credit unions to offer government guaranteed loans to small businesses.
The SBA estimates that 1,500 credit unions will join the lending network, which helps finance existing and start-up small businesses. By including credit unions, the SBA expects to expand its pool of lenders by 30 percent.
The new initiative is part of the Access Across America, a program administered by the National Credit Union Administration (NCUA), an independent federal agency that charters and supervises the nation’s 10,000 credit unions. Access Across America works with government agencies to provides financial services, affordable housing, and economic development opportunities.
In June 2002, Deborah Matz, a NCUA board member, met with Hector Barreto, the SBA administrator, to encourage the SBA to allow credit unions to participate in the government loan program. Matz said that credit unions would be especially effective in helping the SBA reach businesses needing small amounts of capital. In many cases, said Matz, banks won’t consider loans to these businesses because the loan amount is too small.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.