A Sept. 11, 2013, story in Credit UnionTimes (Small Business Owners' Plea to Credit Unions: Earn MyBusiness) reported on a focus group of small business owners whogenerally concluded that credit unions are having a hard timeserving their needs compared to banks.

This may well be a case of “perception is reality,” and may onceagain point to the need for the industry and individual creditunions to do a better job of promoting small business services. Forinstance, while the article cited high praise for the friendlyservice of credit unions, it also recorded the worry that brancheswere not easily accessible to small business employees. Of course,the credit union industry's shared branching network addresses thisconcern, with more than 5,000 live teller branches and 2,000 otherself-service locations—a network larger than all but three nationalbanks.

Small business is the lifeblood of America's economy, and weshouldn't hesitate to say credit unions have often been thelifeblood of small business.

Credit unions, in fact, are go-to institutions forsmall business loans. A study by the Small BusinessAdministration found that from 1986 to 2010, smallbusiness lending at banks decreased while lending by credit unionsincreased dramatically. After the 2001 recession, small businesslending growth at credit unions kept growing at arate of more than 20%. Credit union lending growth continued,though at a lower rate, even after the more recent recession thatbegan in 2008. During this time, lending generally declined,especially from banks.

And, there are many other ways that credit unions are helpingsmall businesses in their community in creative, non-lending ways.Here are some ideas for you, if you haven't implemented themalready.

Organizing Cash Mobs

A cash mob is an event which consists of community membersgathering to help local merchants by purchasing goods and servicesfrom the shops to bolster sales. ORNL Federal Credit Union of OakRidge, Tenn., for instance, announced earlier this year that itwill host a series of cash mobs to help promote and support twolocally owned businesses in its East Tennessee service area eachmonth. For ORNL FCU, the concept of a cash mob is one that fitsperfectly with its core value of community improvement.

Taking the cash mob concept one step further, Navy FederalCredit Union in Norfolk, Va., recently gave $20 “Navy FederalLoyalty Cards” to the first 100 shoppers who participated in a cashmob event. Representatives from the credit union's businessservices group also handed out free T-shirts.

Other credit unions sponsoring cash mobs include Ohio HealthCare Federal Credit Union in Dublin, Ohio; NuPath Community CreditUnion in Wyandotte, Mich.; and Public Service Credit Union inRomulus, Mich.

Recognizing Good Works

Recognizing the good works of local business is another creativeway to help boost local merchants. Bethpage Federal CreditUnion's Central Islip branch hosted its second annualHispanic Business Owner of the Year Award.

The award program is an outgrowth of the Hispanic Initiative,established by the Stony Brook University Small BusinessDevelopment Center that runs under the New York State SmallBusiness Development Center and OLE, the Organization of LatinoEntrepreneurs. The initiative's goal is to support and promoteLatino business owners, and for Bethpage FCU it is an impactful wayto reach out to the Hispanic community as futuremembers. 

Next Page: Being Business-Friendly

Firefighters Community Credit Union of Cleveland, Ohio, is alsoa business-friendly institution that offers financial counselingand other assistance to its members—not just firefighters—who ownlocal businesses. Through a partnership with Accel, a financialcounseling firm based in Farmington Hills, Mich., FCCU provides toits members such free online services as confidential creditcounseling, financial education, housing counseling and optionaldebt management services.

Providing special services to its small business members,CommunityAmerica Credit Union in Kansas City, Mo., has a web pagededicated to assisting business owners with online advice oninsurance, assets, liabilities and employee benefits. The web pagealso includes an article entitled 7 Ways to Keep Your Businesson a Profitable Path.

Woodland, Calif.-headquartered Yolo Federal Credit Union hostsfree workshops year-round for small businesses and non-profits thatfeature guest speakers who are experts in their field and providerelevant information for business owners.

With its eye on helping its members who own small businesses,Glacier Hills Credit Union of West Bend, Wis., hosts an annualMemberfest, which features a series of workshops including clinicsaimed specifically at managing small businesses, as well as abusiness showcase, providing an opportunity for local merchants tobuild their networks. The credit union is planning a new web sitefor launch later this year that will offer members promotional andother online support including free business listings.

Rewards Programs

Another way credit unions can help local merchants is throughrewards programs. Shop Main Street from CO-OP Financial Servicesprovides credit unions with special marketing and sales tools tohelp local businesses such as flower shops and grocery stores.Through the combination of a cardholder rewards program and a morerobust online presence—the latter, a specific point of contentionfor the focus group cited in the Credit Union Timesarticle—credit unions help small businesses not only with theirfinancial needs, but helps them grow their customer base.

Credit unions can be and are natural partners to localbusinesses. Because of their recognized high service standards, thebusiness-oriented services they offer are good business foreveryone.

Michelle Thornton is a senior product manager at CO-OP FinancialServices.
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