Banks Renew Lures for Small Businesses
If it’s all about location, location, location when opening a business, credit unions may want to pay attention to several cities in Florida, California and Texas.
According to Biz2Credit, a New York firm that connects lenders with small businesses for financing, the top 10 metro areas with the highest loan application growth in 2011 and 2012 were Houston, Tampa-St. Petersburg, Denver, Seattle, Dallas-Fort Worth, Orlando, Atlanta, Charlotte, St. Louis and San Francisco-Oakland.
Small businesses in Houston, for instance, had the highest average number of employees at 7.1, according to Biz2Credit. Arora said this is significant because smaller companies have created the lion’s share of new jobs during the past decade. Another trend is the arrival of large numbers of Latinos and South Asian immigrants, who are starting companies in metropolitan areas in all sections of the country, including cities in southern California, Texas and Florida.
The $763 million Charter Oak Federal Credit Union in Groton, Conn., revamped it business lending program in 2009. Last summer, it provided a unique multiyear financing package for a shipyard that allows the facility to refinance its existing mortgage as well as fund future improvements at the 6.5-acre marina in Mystic, Conn. In April, it hired a 30-year bank industry veteran as its new vice president of business lending.