COLUMBUS, Ohio (9/17/12)--Federally insured credit unions in Ohio now are eligible to participate in the State Small Business Credit Initiative's (SSBCI) $35 million Collateral Enhancement Program.
The program is expected to generate more than $285 million in private lending and give credit unions a guarantee of up to 30% to 50% of the loan as a collateral shortfall, said the Ohio Credit Union League (eLumination Newsletter Sept. 5).
The Ohio Department of Development's (DOD) Natalie Burley, manager of business assistance, presented a program overview during a meeting last week at the league. Nearly 20 credit union officials from across the state, a representative of the U.S. Department of the Treasury, and league staff attended.
Although Ohio credit unions are not eligible to accept public funds, they are permitted to participate in the program because of modifications made by the state DOD.
The league is working with DOD to conduct additional training sessions statewide about the Collateral Enhancement Program.