NEW YORK (2/14/13)--A credit union's advice to small businesses in NerdWallet this week was singled out in Forbes.com's coverage Wednesday about how small businesses can succeed in obtaining loans.
Patsy Van Ouwerkerk, president/CEO of Travis CU, Vacaville, Calif., was one of 10 credit union CEOs interviewed by NerdWallet for its series. News Now reported on the series in Wednesday's issue.
"Many new business owners might have a great vision, but aren't able to put their ideas down on paper yet," Ouwerkerk said of loan applications in both the original article and Forbes' summary of credit scores, cash flow and collateral as ways to shore up a business loan application.
"[Small Business Development Centers] provide business owners with free classes and provide them with technical assistance with things like putting together a business plan, legal information, financial statements and projects, and anything related to accessing capital," she added.
"At the end of the day, a loan officer at any financial institution cannot spend hours a day helping borrowers put together basic documents. SBDCs can help business owners with their loan package such that when they sit down with the loan officer, they'll be in better shape," Ouwerkerk concluded.
Keeping the ability to make small business loans and help the economy is a key priority for credit unions and the Credit Union National Association. They are urging Congress to pass legislation that would raise credit unions' member business lending cap to 27.5% of assets from 12.25%. Doing so would generate $13 billion for business loans and help create 140,000 jobs, said CUNA.
For both the Forbes and NerdWallet articles, use the links.