RICHMOND, Va. -- UVA Community Credit Union has become the first credit union in Virginia to participate in the Small Business Administration's loan guaranty programs.
The $329 million credit union submitted its first SBA loan request in late October seeking a guaranty on a $75,000 loan to assist a startup business in the Charlottesville/Albemarle area.
"Without SBA guaranty support of this loan request, we would not have been able to meet our member's request for startup financing of her business," said Michael Lyster, vice president of business services with UVA Community Credit Union.
The credit union was approved to participate with SBA in January, at which time the lending staff received an orientation and training on the agency's financial assistance programs.
"We are excited to welcome UVA Community Credit Union to the list of active SBA lenders in Virginia," said Ronald Bew, district director of SBA's Richmond district office. "Now that [it] has 'taken the plunge' we hope that other credit unions will follow suit."
The Virginia Credit Union League applauds the credit union for being the first.
"Credit unions, with their mission of serving their members and communities, are perfectly suited to join with the SBA in their mission of promoting small business development," said Rick Pillow, president of the league.
Credit unions have been eligible to participate in the SBA lending programs since 2000. According to Pillow, one in 10 adult credit union members is a small business owner. As of Sept. 30, there were 128 lenders enrolled to participate in the SBA financial assistance programs in Virginia. These lenders include banks, nonbank lenders, certified development companies, and now, credit unions. In fiscal year 2006, which ended Sept. 30, the Richmond district office approved 1,248 small business loans, valued at more than $238 million.
UVA Community Credit Union serves more than 49,000 members. --firstname.lastname@example.org