To bankers' dismay, three Wisconsin credit unions are banding together
Banta Community Credit Union in Menasha, CitizensFirst Credit Union in
Wisconsin law lets credit unions form for-profit service corporations to
Business Lending Group would be the first such entity focused on
It would make loans of up to $1 million in a market that the credit
Executives from the credit unions did not return calls to American
But Wisconsin banks, saying credit unions are stepping on their turf,
The banks say they want to be certain that the credit unions will lend
"Credit unions were formed to serve the little guy, not so that they can
The Department of Financial Institutions has not responded to the
She also said the new entity would pay taxes on its income.
Still, community bankers in the Fox Valley-in central Wisconsin, about
David L. Blohm, president of Appleton-based American National Bank Fox
Like small banks, credit unions are generally closer than large banks to
Credit unions "can bring the whole thing to the table-the pricing
But credit unions should be more closely regulated if they make
Ron Halvorsen, president of the Wisconsin Credit Union League, said
About 35 credit unions in the state are already offering credit to small
"Most of these loans go to people that banks won't lend to anyway," he
Mr. Halvorsen predicted that other Wisconsin credit unions may form
The others "are probably going to wait and see how successful that is,"