EasCorp MBL CUSO, St. Dominic FCU Help Member with $410,000 Financing
BURLINGTON, Mass. - Eliminating the middleman, in this case, a community bank, helped a member at St. Dominic's Federal Credit Union take his business financing to another level. Through its Correspondent Lending Program run by Octant Business Services, LLC, EasCorp's CUSO for business lending, the $14 million St. Dominic's FCU helped one of its members obtain $410,000 in business financing. The program helps credit unions regardless of size to serve their member business accounts. In this case, $375 million First Citizens' Federal Credit Union, one of Octant's participating credit unions, funded the transaction, which was used to pay off a commercial mortgage loan from a local bank, consolidate additional debt, and provide a line of credit for future growth. For its part, St. Dominic's FCU received a business checking account from the borrower from which monthly loan payments will be debited via the ACH, a written non-solicitation agreement from First Citizens' FCU, fee income based upon the amount of the closed loan and an opportunity to accommodate member needs at no cost and with no credit risk, according to Octant. Working with the CUSO helped streamline the entire process, said Frances Kelly, president, St. Dominic's FCU. "We used to send requests for commercial loans to the local banks," Kelly said. "We earned nothing for the referral and were at risk of losing personal business in the process. We won't be doing that any longer thanks to Octant." Collaborative efforts such as the Correspondent Lending Program, are another effective way for credit unions to enter the business lending arena, said Alan Bernstein, Octant's president and EasCorp senior vice president, business development and strategic planning.