LANSING, Mich.-The Michigan Credit Union Small Business Financing Alliance (CUSBFA) is now operating and has launched
As part of the arrangement, 34 Michigan credit unions have committed $43 million in small business loans to the program, with more CUs expected to join throughout the year. MCUL President and CEO David Adams said that the alliance is needed to offset banks' retreat from small business lending and to revive Michigan's economy. "Most important, we are creating an alignment between the credit union industry, existing small businesses, and the Small Business and Technology Development Centers."
The MI-SBTDC covers 12 regions statewide and partners with state agencies and colleges to provide training to entrepreneurs and small business owners who want to sharpen their skills and develop sound business strategies. CUSBFA.com provides the entry point for many businesses that connect them with the SBTDC. It also provides small businesses access to the CUSBFA counseling form, information on financing from participating credit unions, and additional state and federal programs that will assist entrepreneurs in moving their business forward.
"Lenders, especially for start-up businesses, are most interested in talking to people who have a business plan and some legs under them," Adams noted.
There are no loan limits for CUSBFA consideration, and each participating credit union uses its own underwriting standards and policies. Adams believes that most loans will range from $10,000 to $250,000.
Richard King, regional director for the SBTDC at Eastern Michigan University in Ypsilanti, sees the CUSBFA providing a strong source of capital in a tough time. "We are excited to have credit unions stepping up to play a key role, adding additional lending power to small businesses now."
