The designation allows the $171 million credit union to process the agency's loans at a faster rate. SBA said it delegates the final credit decision and most servicing and liquidation authority and responsibility to preferred lenders. The agency will continue to check loan eligibility criteria under this program.
Preferred lenders are nominated based on their historical record with the SBA, according to the agency. They must have demonstrated a proficiency in processing and servicing SBA-guaranteed loans. In the event of payment default by the borrower and the need for enforced collections, the preferred lender agrees to liquidate all business assets before asking SBA to honor its guaranty.
Yolo FCU launched its business services program in 2008.
CU Urges Unbanked to Get Smart
HOUSTON -- Smart Financial Credit Union is helping the unbanked see that there are financial options beyond check-cashing stores and payday lenders.
The credit union is the latest to take part in the City of Houston's "Bank on Houston" program, which encourages consumers to use more traditional financial institutions for their banking needs.
"Smart Financial Credit Union is pleased to see the City of Houston take such initiative to help its citizens with their financial lives," said Jason Deitz, vice president of marketing. "We have been serving the Houston area in this capacity for 75 years, so it made very good sense for Smart Financial to be a partner in such a visionary program."
The Bank on Houston program, which was modeled after the successful Bank on San Francisco, is a collaborative effort of the City of Houston, the National League of Cities, the Federal Reserve Bank, 19 participating banks and credit unions, and many other organizations to bring the city's unbanked individuals into the financial mainstream.
The program's main goals include raising awareness of the economic impact of being unbanked, working to find potential solutions and educate those in the low- to moderate-income market about the benefits of account ownership.
Dow CU Provides Online Tax Service
MIDLAND, Mich. -- Dow Chemical Employees' Credit Union is providing its members with access to a free tax preparation program through its Web site, www.dcecu.org.
The program, "Just file it! We'll help: Free tax preparation resources provided by credit unions," provides members with access to available tax credits for individuals and families.
"In past tax years, hundreds of millions of dollars of federal tax refunds have gone unclaimed by Michigan by the people who need them most-low-income families and individuals," said Lisa Gray, compliance specialist. "The earned income tax credit alone has benefits as great as $4,824 for families with two or more children."
The "Just file it!" program is not available for business owners; church employees or members of the clergy; those who have sold real estate in the past year; employees who have a non-U.S. address; individuals with disabilities; and those in the military who may be eligible for tax credits that are not included in the program.
The program will be available to members through mid-April.