AmeriChoice FCU is First Pennsylvania CU Authorized to Make SBA 7(a) Loans
MECHANICSBURG, Pa. - AmeriChoice FCU will sign its contract with the SBA during the Pennsylvania Credit Union League's Annual Meeting April 24-26 to make SBA 7(a) loans, making the CU the first in the state to become an SBA 7(a) lender. The $86.5 million CU received approval from the SBA March 14. AmeriChoice will make the loans in conjunction with the PACUL Service Corp.'s new program for CUs' small business members called CU BizSource which was launched earlier this year. CU BizSource will identify possible candidates for the loans and co-initial analyses for AmeriChoice. The credit union has been involved in offering member business services for about a year. It currently has nine business loans in its portfolio worth $600,000, and it also offers business checking and is in the process of working with a payroll and merchant services provider. Matt Kidding, AVP, Small Business for AmeriChoice said the credit union decided to roll out all of its business services at one time because "when you're trying to enter this market and small business members come in, you have to be able to offer them the services as a package." As for the SBA 7(a) loans, Kidding said, "Offering the SBA 7(a) loans will open up another round of borrowers to us, those that are collaterally challenged or are new businesses. It means we'll be able to offer loans to these members." AmeriChoice has 10,200 members. The community-chartered credit union serves all of Cumberland County.