Federation to Launch SBA Loan Platform
The National Federation of Community Development Credit Unions has announced it is partnering with the Community Reinvestment Fund USA to launch a software platform that will allow community development credit unions to more easily make loans with the Small Business Administration.
The Minneapolis-based CRF, a community development financial institution, developed the software, which will allow credit unions to originate loans through the SBA totaling between $25,000 and $5 million, the National Federation said. The new software will also facilitate the process between both borrowers and lenders, the organization added.
The National Federation added that five credit unions – the $91 million, Ithaca, N.Y.-based Alternatives Federal Credit Union; the $46 million, New York City-based Lower East Side Peoples Federal Credit Union; the $10 million, New York City-based Neighborhood Trust Federal Credit Union; the $248 million, Lansing, Mich.-based Case Credit Union and the $51 million, Lemmon, S.D.-based Dakota Plains Federal Credit Union – are currently beta-testing the software in their environments.
“The Federation is pleased to join forces with CRF, a fellow CDFI that is nationally recognized as a leading lender to small businesses, on this important initiative,” Cathie Mahon, president/CEO for the National Federation, said. “This collaboration marks a milestone for the community development finance field, harnessing the expertise, tools and technologies across diverse institutions to reach new populations, establish greater efficiencies and increase investment in underserved communities.”