MEMBERS Business Solutions To Acquire CU BizSource
MEMBERS Business Solutions Company, LLC, is acquiring CU BizSource-a small business lending company launched by the Pennsylvania CU Association-as part of an effort to facilitate a secondary market for member business loans.
MBSC was established by MEMBERS Development Company LLC, a research and development firm owned by credit unions and CUNA Mutual Group, and will use the secondary market to promote best practices in business loan underwriting and provide additional liquidity and risk management alternatives, the company said.
The Pennsylvania Credit Union Association, which created CU BizSource last year, will have a minority interest in MBSC.
CU BizSource currently serves 21 customers in Pennsylvania and three other states with underwriting consultation, document preparation, loan servicing and a variety of training, regulatory and administrative support.
The acquisition will allow MBSC to combine the expertise of CU BizSource with that of MEMBERS Capital Advisors, CUNA Mutual's investment advisor affiliate.
"(MBSC) will be well suited for credit unions and credit union service organizations that are already active in member business lending or are looking to start business lending programs," said Rick Rice, chairman of MEMBERS Development, and CEO of Teachers CU.
Once the acquisition is final, MBSC will serve all of CU BizSource's current customers and will be in a position to take what has been a regional success to credit unions nationwide.