Now that all credit unions can apply for guaranteed loans through the Small Business Administration's program, they are in a position to help the SBA reach its goal of making more "truly small loans" to entrepreneurs, something that will help turn the country's troubled economy around, according to SBA Administrator Hector Barreto.
SBA's recent expansion of its SBA 7(a) loan program will mean as many as 1,500 credit unions nationwide will have an opportunity to participate in the program, compared with just 71 CUs last year.
That would mean a 30% increase in the number of lenders small businesses can seek out through the program.
"Credit unions have a presence in communities that have not been well-served by existing program participants, particularly in low- and moderate-income areas in inner cities and rural communities," Barreto told the GAC audience. "Your ability to reach a more diverse pool of entrepreneurs...cannot be underestimated."