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Technology CU offers lifeline for startups
SAN JOSE, Calif. (5/5/11)--San Jose, Calif.-based Technology CU is helping startups and emerging businesses grow and thrive in Silicon Valley and the greater Bay Area in California. Its commercial and business banking division is offering a range of lending options for businesses looking for financing, including Small Business Administration (SBA) loans from $10,000 to $5 million and SBA Express Loans for those needing quick financing. The SBA loans "are a lifeline for many startups and emerging growth companies who find themselves in a Catch-22," said Herman White, Tech CU's senior vice president of commercial and small business banking. "They need cash to accelerate growth, but because they are young or very small, they probably don't have the credit history that's required for securing a traditional loan," he said, adding that the SBA "provides an alternative." Tech CU also helps connect business banking members to other partners and funding sources, where appropriate, through its relationship with angel groups, incubators/accelerators, niche venture capital firms, strategic investors and other member companies. "We see ourselves as an essential part of helping our member companies grow," White said. He noted that the nearly $1.5 billion asset credit union has worked with entrepreneurs and startups in the region for more than 50 years. "That's why we understand the needs of emerging companies more than most other financial institutions," he said. Tech CU was one of the first credit unions in the nation to offer a complete suite of business-banking services to its members in 2006. It also offers wealth management services for companies and individuals. Credit unions and the Credit Union National Association (CUNA) support legislation in Congress that would increase credit unions' member business lending cap to 27.5% of assets from 12.25%. CUNA has estimated that by increasing the cap, credit unions can help create 140,000 new jobs with $13 billion in new small business loans, at no expense to the taxpayer.


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