The $2.6 billion Northwest Federal Credit Union said it hasacquired substantially all of the assets of a business financegroup that specializes in government-guaranteed loans.

The Herndon, Va.-based cooperative has bought Park Place EquityLLC in Scottsdale, Ariz., an independent nationwide business lenderspecializing in the origination of loans under the SBA's 7(a) and 504 lending programs along with the U.S.Department of Agriculture's business and industrial lendingprogram.

Park Place will continue to do business under its Park PlaceEquity brand as a division of Northwest Federal, according to both entities.

The value of the deal was not disclosed.

Over the past two years, Northwest Federal has been developing agovernment lending platform to serve the needs of its businessmembers, said Chris McDonald, president/CEO of the creditunion.

By adding Park Place and the company's expertise to its existingplatform, Northwest Federal will immediately gain a nationallyknown brand and substantial, additional experience in this lendingfield, he added.

“We consider the additional leverage provided by governmentguaranteed loans to represent one of the most compelling optionsfor credit unions to expand memberbusiness lending,” said McDonald.

Jason Bengert and Chris Balestrino, co-CEOs of Park PlaceEquity, said they are excited about the prospect of joiningNorthwest Federal. According to Bengert, Park Place Equity wasstarted nearly seven years ago with a goal of facilitating businessowners' access to capital and funding to start and grow theirbusinesses.

“We are proud to have been able to accomplish this goal and tohave grown Park Place to the point of providing nearly $123 millionin funding to businesses in our most recent year of operations,”said Bengert.

He added, “We feel joining Northwest Federal is a natural fit,as both organizations are fully committed to bettering thefinancial lives of our members.”

Kilpatrick Townsend & Stockton LLP served as outside legalcounsel to Northwest Federal and Sandler O'Neill + Partners L.P. served as financial adviser tothe credit union.

Becker Peters PLLC served as outside legal counsel to Park PlaceEquity and CrossGate Capital Funding LLC provided advisoryservices.