Through the creation of a new fund, UT Federal Credit Union islooking to grow its small business relationships and helpentrepreneurs.

The $214 million credit union in Knoxville, Tenn., has set aside$100,000 for its new Line12Fund to help entrepreneurs launch andexpand their businesses. Eligible applicants can secure up to a$20,000 loan.

Line12Fund is named for the line where business income isrecorded on a personal tax return, according to UTFCU.

The credit union said it is taking a different approach to earlystage underwriting with an eye toward business plan, market sizeand team as well as traditional lending criteria like creditscore.

Part of the application process will include an investmentadvisory committee to screen people who come through a proprietarysoftware system designed by Angel Capital Group, a network of angelinvestors, said Jonathan Patrick, senior vice president and chieflending officer at UTFCU and is also spearheading the Line12Fundinitiative.

If applicants are approved for a loan, they also get partneredwith several resources to help propel their businesses forward.

The fund made its official debut Thursday during a launch partythat featured blogger, author and speaker Mark Schaefer who spokeon the future of social media marketing.

This is not the first time that UTFCU has taken an innovativeapproach to expanding its presences in the small businessspace.

In 2012, the credit union, teamed up with the University ofTennessee's Knoxville's Anderson Center for Entrepreneurship andInnovation in the College of Business Administration to offerVol Court, a series of one-hour seminars presented weekly overthe course of a semester to provide insight on how to start a newbusiness.

The program's goal is to help people develop new business ideasand provide a forum for those with different skill sets to connectand potentially form new businesses.