Firm Aiming To Create Secondary Market For Biz Loans Hires New (And First) CEO
Another step has been taken in the CUNA Mutual-driven effort toward creating a secondary market for credit union business loans.
CU BizSource, a business lending firm formerly known as MEMBERS Business Solutions Co., has named Philip M. McGoohan as its first president and CEO. McGoohan said the company, which is owned by MEMBERS Development Co. and PACUL Services (a subsidiary of the Pennsylvania league), will put its initial focus on creating that secondary market.
McGoohan comes to CU BizSource with more than 25 years of management experience in commercial lending and investment banking and was most recently president and principal of Anderson/Roethle, Inc., a Milwaukee-based merger and acquisition advisory firm.
McGoohan also spent 17 years in various senior management positions at Marshall & Ilsley (M&I) Bank. The name change is actually a return to its original name when it was spun off from the Pennsylvania Credit Union Association (PCUA) on Sept. 1, 2004. McGoohan said the name change was prompted by the prevalence of other organizations in the marketplace with similar names.
The company plans to use the secondary market to promote best practices in business loan underwriting and provide additional liquidity and risk management alternatives. McGoohan said plans also call for CU BizSource to become a broadly-owned credit union organization and expand into other areas that support credit union member business services, with underwriting consultation, document preparation, loan servicing and a variety of training, regulatory and administrative support.
CU BizSource will facilitate a secondary market for member business loans by combining its expertise with CU System Funds(tm), a new private investment fund created in March by CUNA Mutual Group. Credit unions certified by CU BizSource are eligible to sell member business loans to CU System Funds.