ASI Federal Credit Union, the 65,000-member, $302 million community development credit union in the New Orleans suburb of Harahan, La., is approaching the end of its first year as lending partner for Kiva.org, the organization that allows individual donors to fund individual small business loans around the world.
ASI CEO Mignhon Tourne reported that the credit union has underwritten and financed roughly 39 of the small business loans so far for Kiva for about $345,000. The credit union initially underwrites, funds and services the Kiva loans that the organization's donors then back fill.
Tourne reported the loans have created 35 jobs and preserved more and that 66% of them went to women-owned businesses and 89% to minority-owned businesses. Ninety-two percent of them went to lower-income members.
The loans have 10% delinquency rate but only a 2% default rate, Tourne said, adding that the credit union didn't consider even that 2% lost.
“We have a very talented and creative collection team at ASI which is always reaching out to those members to help them find a way to bring their loans current,” she said. “We don't count them out.”