SAN FRANCISCO-Credit unions received a big splash of free ink from financial advice website NerdWallet.com in its recent "CEO Series on Small Business Lending."
The company, which offers consumers tips relating to subjects ranging from credit cards to travel to investing, spotlighted 10 CU CEOs among a group of lenders that included community banks, crowdfunders and alternative lenders. Seven of the 10 were from California, thanks in part to input from the California league
Of the 10, Patsy Van Ouwerkerk, CEO of $2-billion Travis CU, Vacaville, Calif., made perhaps the biggest impact by getting one of her quotes picked up by Forbes.com.
Van Ouwerkerk and the other nine CEOs-Mark Antonioli, Meriwest CU, San Jose, Calif.; Brad Canfield, Key Point CU, Santa Clara, Calif.; Gary Grinnell, Corning FCU, Corning, N.Y.; Christina Lethlean, Gesa CU, Richland, Wash.; Brett Martinez, Redwood CU, Santa Rosa, Calif.; Jim Minge, Texas Trust CU, Mansfield, Texas; Stephen O'Connell, North Island CU, San Diego; Steven Stapp, San Francisco FCU, San Francisco; and Jeff York, CoastHills FCU, Lompoc, Calif.-were asked to help small business owners navigate the often confusing world of finance. This gave the credit union CEOs a chance to reach people who might not otherwise ever learn about CUs, and offer their version of the credit union difference.
Meriwest CU's Antonioli emphasized the not-for-profit nature of credit unions, which he said "allows us to return profits to our members in the form of better rates and lower fees."
The Critical Difference
Gesa CU's Lethlean told NerdWallet, "The most critical difference between credit unions and banks is the ability to make strategic initiatives based on the best interest of the small business owner rather than the shareholders."
"We also can make decisions more quickly compared to larger financial institutions, such as larger regional and national banks, which often have to conform to overarching corporate policies," said Lethlean. "As we are locally based and active in our communities, we can give borrowers a fast answer."
Texas Trust CU's Minge sought to advance the credit union argument for lifting the 12.25% of assets cap MBLs in front of an entirely new audience. He said increasing the credit unions able underwrite business loans would make an additional $13 billion available for lending to small businesses. "This investment would certainly result in new jobs and economic growth," he said..
Martinez of Redwood CU discussed the "significant" role RCU played in helping many local businesses survive the recession.
San Francisco FCU's taxi medallion loan program earned it a Credit Union Journal Best Practices Award [ Nov. 28, 2011], and CEO Stapp took the opportunity to fire back at a myth propagated by bankers.
"We are one of only two credit unions doing these loans in our market," he noted. "Our story is as much as the banks say we are taking business away from them, they are not doing any of these loans in large part because it is a time-intensive loan process and the loan amount is too small for many larger banks to service."
