Generations FCU Team Forges New Path to MBL
- Things have changed in the past decade–Generations FCU had begun lending to small business borrowers.
- But none of the existing business loan products really fit the members’ needs for both a mortgage loan and a business loan.
- In conducting research to find a solution, the lending officers discovered the SBA’s 504/CDC loan program.
For San Antonio, Texas-based Generations Federal Credit Union, helping out members has meant making the sorts of loans it had never made before or had even contemplated making.
Growing desperate, Al decided to give Generations another try, even though he remembered having been told before that Generations did not offer business loans. But to his and Ramona's surprise, things had changed in the decade since they last asked: Generations had begun lending to small business lenders.
"Once the credit union got involved," Ramona said, "that's when everything finally began to happen."
CDCs are nonprofit corporations set up to contribute to the economic development of their communities. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide, according to the SBA, and each CDC covers a specific geographic area.
The CDC Generations and the Diegos found was the Capital Certified Development Corp. in Austin, Texas.