SBA Urges CUs To Keep Making MBLs A Priority

WASHINGTON - Loan backed by the Small Business Administration continue to represent an important opportunity for credit unions, not only in their ability to grow and serve their members, but also in the opportunity to contribute to the wealth and health of the nation's economy, according to SBA Administrator Steven Preston.

Preston observed that a number of today's most successful, large companies got their start with SBA loans, including Intel, America Online, Apple, Staples, Under Armor, Callaway Golf and Federal Express.

In addition to the more familiar SBA loan guarantee program that CUs can use to make member business loans that don't count against the statutory 12.25% cap, Preston noted the agency also offers disaster loans to both businesses and homeowners. Following Hurricane Katrina, SBA has revamped the program to speed up turnaround times. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com