Media Rap Breaks Out on Bank Vs. CU Loans
A media tit-for-tat is surfacing in Wisconsin this month over whether it's credit unions or banks serving up small business loans in a tough economic environment.
The Wisconsin Bankers Association admits in Milwaukee news articles that it has an unfortunate regulatory problem-all that scrutiny on troubled banks has triggered a credit tightening.
And the Wisconsin Credit Union League, pointing to the bank dilemma, reminds consumers CUS have money to lend.
"If a bank has turned you down for a business loan, don't give up-contact a credit union," declared the league in press release, which also noted that CUs are financially strong "and didn't get caught up in the risky lending practices so many institutions engaged in."
A spokesman for WBA stressed that while it is true that many of their members are under the gun on lending because of the difficulties, banks in the state "are clearly lending and it is false to state otherwise."
"Credit unions literally have billions to lend but aren't always the first to come to mind in the business community because banks have always dominated the market for business loans," said Brett Thompson, president/CEO.
Moreover, "banks have achieved this market share by making the big, multi-million dollar loans that drive profits for their shareholders" but CUS are willing to make the smaller loans "and offer free services to help entrepreneurs understand and manage costs."