SALT LAKE CITY -- With the hopes of going independent in the future, United San Antonio Federal Credit Union is getting its feet wet for now as Member Business Lending, LLC's newest partner.
The CUSO was launched in 2004 by Mountain America Financial Services, a subsidiary of $1.8 billion Mountain America Credit Union. The $214 million United San Antonio FCU said it joined because it was a natural progression.
"We don't have the SBA lending expertise, but the market for it here in San Antonio is prevalent," said Rick Neidigh, vice president of lending operations, United San Antonio FCU.
"Our long term goal is to get into SBA lending ourselves, but at this point we wanted to partner with MBL so we can begin to offer business lending to our members immediately. With this partnership, we can grow and gain the experience we need to venture on our own in the future."
The $225 million Honolulu Federal Credit Union has also partnered with the CUSO. Warren Nakamura, president/CEO, expects business lending to do well for the credit union.
"I see the potential for serving a large number of businesses seeking affordable loans and deposit services from our office next to Ala Moana Shopping Center, the largest open-air shopping center in the world with 56 million visiting its 260 shops and restaurants each year," Nakamura said.
Honolulu FCU has a loan-to-share ratio of 61%, which allows it to commit loans to business lending in addition to meeting members' consumer and mortgage loan demands, Nakamura said.
According to MBL, four of its CU clients made the top 10 list of SBA loans by volume in 2005: Mountain America CU, America First CU, Jordan CU and Tooele FCU.