Greater Nevada Credit Union Grows Biz Loans 115%
Providing loans to local firms that banks deemed too small to deal with has helped Greater Nevada Credit Union grow its business lending portfolio by 115% over the past year and a half.
The $500 million credit union in Carson City, Nev., said it has $23 million in business loans outstanding.
Jeremy Gilpin, GNCU vice president of business services, said his team is filling a gap for small to medium-sized businesses that need money to build and grow.
One of the credit union’s newest products, construction loans debuted in January and is taking off just as rapidly thanks to local businesses that want to expand, he added. So far, GNCU said it has nearly $2 million of them on the books with another $2 million in the pipeline.
“Many of these loans are too small for the bigger banks and often get referred to us, especially since other financial institutions in our area aren’t necessarily equipped to deal with construction loans,” Gilpin said.
L.A. Bakery in Carson City received a construction loan from GNCU to expand its business to provide better dine-in and take-out options, while also increasing its wholesale distribution, according to the credit union.
Gilpin said like many businesses in northern Nevada, an area hit hard by the recent recession, the bakery was ready to grow, though funding options remained limited, especially through larger financial institutions.
“Up until last year, northern Nevadans haven’t thought of Greater Nevada Credit Union for business banking and loans,” Gilpin noted. “By having the services and products that are in demand, as well as the expertise and flexibility to customize each solution, we’re able to help a lot of local businesses get to the next level.”
Gilpin said that though GNCU has offered business services for decades and business loans since 2003, the credit union has become more active in the latter over the past two years. In 2013, there was a strategic focus on significantly expanding the department and its offerings.
Collectively, his team offers business owners more than 100 years of experience, as well as a suite of deposit and loan products, Gilpin said.
The credit union currently offers three different business checking products, as well as a variety of business loans, including SBA and agricultural loans, business credit cards and merchant services.