By Natalia Olson-Urtecho | Feb 27, 2015
Two out of every three new, private sector jobs are created by small businesses, making them unique cornerstones of America and the backbone of our economy. That’s why it’s so important for small businesses to have access to capital to start and grow their businesses.
To help bridge credit gaps, we at the U.S. Small Business Administration are partnering with credit unions. Credit unions in the mid-Atlantic region are incredibly important because they are community-based and mission focused. They help their members finance cars, homes, education, and of course, small businesses!
With this partnership we’re engaging 250 credit unions to approve at least 10 loans of $50,000 or less, injecting over $125 million into the small business economy. The economic influence of this partnership cannot be overstated. There are nearly 6,800 federally insured credit unions with over 100 million members and around $1 trillion in assets.
Additionally, this partnership meets our mandate of being “Smart, Bold, and Accessible” since small-dollar loans do not count toward the credit unions’ business loan cap. This provides flexibility to distribute small-dollar loans, which will increase access to capital to communities and fire up local economies.
This partnership is one of the many ways SBA is dedicated to creating jobs and tapping into America’s full entrepreneurial potential. We know that for those who dream big, work hard, and play fair to achieve the American Dream with the SBA, the possibilities are limitless!
Along with President Obama, we’re committed to moving America forward by making it easier for entrepreneurs to access fundamental tools and resources to start and grow new businesses. When we strengthen small businesses, we’re driving the overall economy, and increasing opportunities to small business owners and the middle class.
SBA has taken additional steps to boost small-dollar lending, which will also bolster our credit union partnership. We’ve streamlined credit evaluations by revising credit criteria for SBA 7(a) small dollar loans and we’ve zeroed out fees on small-dollar loans ($150,000 or less), making it easier for entrepreneurs to access capital by cutting costs and time.
So connect with your local credit union, and ask them to stay tuned for further details from SBA. For now, visit www.sba.com/local to learn more about how you can gain access to capital to jumpstart your business.
U.S. Small Business Administration Mid-Atlantic regional administrator