HUNTSVILLE, Ala. -- Redstone Federal Credit Union has garnered another business lending first.
The $2 billion credit union said it is the first financial institution in Alabama to offer the Small Business Administration's Community Express loan program.
Community Express is a commercial loan product designed to increase working capital, help business owners meet daily operating expenses and accelerate growth. Borrowers can receive loans up to $50,000 with no collateral or prepayment penalty. Borrowers will also have access to free counseling. The loans typically carry a seven year-term and start-up and established businesses from all industries are considered. For-profit businesses are also usually eligible for the SBA Community Express loan if the business is 51% owned or controlled by minorities, women or veterans or the business is in a low to moderate income area, the credit union said. The entire state of Alabama currently meets this criteria so any business in Alabama is eligible to apply, according to the credit union. The business and its owners must still have "good credit and character." "The application process is easy and loan decisions are quick," said Jack Wright, assistant vice president of business lending at Redstone. "We're very excited to be able to offer this program to help people climb the ladder of success in the business world. After all, the philosophy of the Credit Union industry is...People Helping People." Wright said Redstone expects to have the online application to be available within 30 days but members can call in the mean time. Redstone FCU was also the first credit union the state to offer SBA loans. It serves more than 265,000 members.