Credit Unions Win by Helping Small Businesses to Win
By Ken Lowy, NewtekOne
June 25, 2024
Small Businesses Facing Challenges
Rising prices affect everyone, in particular small businesses which immediately feel the sting of higher operating costs. Many seek financing to cover the rising costs as well as to have growth capital to expand their operations. Often these businesses turn to credit unions as banks are either not willing or unable to meet their capital needs.
Why Small Business Owners Prefer Credit Union Loans
Small businesses are the lifeblood of the U.S. economy but don’t always get a fair shake from the business lending community, especially during challenging economic times. The recent banking crisis compounded the situation, making it more difficult for businesses to acquire the capital they need to compete, grow and thrive.
On a more positive note, credit unions enjoy helping their members who own small businesses. It is a well-known fact that meeting a business member’s capital need positively impacts the local economy, strengthens relationships, attracts new members and deposits. More and more credit unions are realizing that being a good business lending partner supports their overall growth objectives and ensures long-term success. Everyone wins when local small businesses thrive.
How Businesses Use Loan Proceeds
- Buying or refinancing a commercial real estate property
- Acquiring or expanding a business
- Making leasehold improvements
- Refinancing existing business debt
- Purchasing equipment or covering operating expenses
With the Federal Reserve signaling a softening monetary policy and interest rates likely declining, now is an opportune time for credit unions to reach out to business members to discuss their capital needs. They will appreciate the interest in their business and the call will go a long way toward strengthening their relationship with your credit union.
Connect with NewtekOne to learn more.
About NewtekOne
From lending and payments to payroll, insurance, and technology, NewtekOne provides leading business solutions to credit unions and their members.