Credit Unions Hoping To Increase Small Business Lending To Compete With Big Banks
Written by Ken Gaebler
Credit unions are looking to offer small businesses greater access to credit.
Major banks have been the source of much ire in small business financial news throughout the recession, causing many entrepreneurs to take their accounts elsewhere.
Community credit unions have been one of the biggest beneficiaries of small business owners' declining confidence in large financial institutions, and they are taking advantage of the situation.
According to the Wall Street Journal, credit unions are aiming to double the amount they lend to this sector and are finding government support. In fact, Colorado Senator Mark Udall, a Democrat, is planning to introduce legislation that would increase the amount of assets credit unions can lend to small businesses to 25 percent. Currently, they are limited to 12.25 percent of assets.
"It is one of the few easy ways that we have to support credit unions, small businesses and help create jobs all at once," Udall said in an email to the WSJ.
Additionally, credit unions are now offering more services. Dan Egan, president of the Massachusetts Credit Union League, told Wallet Pop that credit unions are increasingly offering remote deposit and other mobile apps.
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