Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
IWall St. JournalI Local CUs an option for borrowers
NEW YORK (11/12/08)--The Wall St. Journal Tuesday noted credit unions as an option for borrowers seeking small business loans. The Journal told the story of Amy Loera, who wanted to expand her family’s Mexican restaurant. After being turned down by nine banks for loans, Loera received a $643,000 loan from Arrowhead CU, San Bernardino, Calif. Jon Parks, Arrowhead CU vice president, said Loera’s loan was approved because the family showed it had experience managing restaurants and proved its restaurants were successful. The new location is being planned as an affordable family restaurant, which will help it succeed in today’s economy, he added. The credit union looks for strong credit scores, but cash flow often trumps that, he said. Loera’s business had a credit score of 750, was debt-free, and the restaurant was able to predict how much money it would make in the next year. These factors didn’t matter to any of the banks--but it did matter to Arrowhead, Leora told the paper. Parks said his institution looks at the outlook of the overall industry when approving loans. Some businesses may do well despite a tough economy because they offer a niche, he added. Sandy Baruah, acting administrator of the Small Business Administration, told the paper that larger financial institutions rely on credit scores. Community institutions look at the business plan and make a decision based on their comfort level with the business plan and presentation, though credit scores still matter, Baruah said.
Other Resources

RSS print
News Now LiveWire
NCUA confirmed earlier indications that there would be no National Credit Union Share Insurance Fund premium for 2014.
13 hours ago
.@NJCUL supported prized-linked savings legislation introduced in New Jersey state Senate.
13 hours ago
#creditunions emphasize co-op principles during National Co-op Month #NewsNow http://t.co/zEb9UFot1N
20 hours ago
Servicemember's spouse drives away with Bank on More's SUV thanks to #missouri #creditunions http://t.co/WvTrKxh0sV
21 hours ago
From @FHFA this a.m.: U.S. house prices up 0.5% in Aug. on seasonally adjusted basis from previous month. More here: http://t.co/1yVDOPggeX
22 hours ago