Callahan & Associates has launched a strategic alliance withGrowthFountain that may allow credit unions to help pioneer thecrowdfunding trail.

GrowthFountain will provide support, tutorials and tools to helpstartups and small businesses to raise capital, according to thecrowdfunding marketplace.

In addition, the platform will provide forums to facilitatepersonal connections, so businesses can find talent, solicit adviceand meet the right people necessary to advance their cause, thecompany said.

Jon Jeffreys, a managing partner at Callahan in Washington,D.C., told CU Times that the proposed changes in equitycrowdfunding will enable credit union members to invest in localbusinesses, an opportunity traditionally reserved for wealthyinvestors.

“At Callahan, we see crowdfunding as a way to take the People Helping Peoplephilosophy into the digital age,” Jeffreys explained. “We believethere will be a real first-mover advantage in this market. That'swhy we're so excited about our partnership withGrowthFountain.”

Numerous cooperatives have already expressed interest inutilizing GrowthFountain, he said.

“We are confident credit union members will relish the newinvestment opportunities as much as the entrepreneurs within theircommunities appreciate gaining access to capital, connections, andsupport never before seen,” Jeffreys added.

The $1 billion Jeanne D'Arc Credit Union said it plans to offerGrowthFountain as a tool for members that want to raise money forbusiness ventures or invest in the local community.

“The Growth Fountain initiative is an innovative way of allowingus to assist business owners in making connections, to provide animportant service to community members and to help local economiesgrow,” Mark Cochran, president/CEO of the credit union in Lowell,Mass., said. “It aligns with our mission and is a winningproposition for everyone.”

Credit union members will have access to investment options thatdirectly support and grow their local economies, Jeffreys said.

“Before this partnership, the 100 million credit union membersdid not have a reliable way to invest in small businesses, whichare the backbone of the communities in which they reside,” headded.

Ken Staut, CEO of GrowthFountain, said credit unions are theideal facilitator for crowdfunding.

“We believe that crowdfunding will be a complete game changerand we're convinced that credit unions, not banks or investmentshops, are the best bridge connecting people with theseopportunities,” Staut said, adding crowdfunding helps to level theplaying field for small businesses.

“Currently small business finance options are cost prohibitiveand inefficient, and small organizations have difficulty attractingthe right talent, getting the right advice and connecting with theright people,” Staut said.