Banks say small business loans are too expensive to justify their minimal returns.
The large and growing need for affordable remittance transfer services represents an equally large business opportunity for credit unions. This is especially true for those U.S. cooperatives serving Hispanic members with family in Latin America.
Once the domain of Latin mom-and-pop shops, remittance services have in recent years become accessible to Hispanic and other consumers through their local credit unions.
Credit unions that have been recognized as community development financial institutions and those that have been judged viable by the NCUA have begun receiving money under the Community Development Capital Initiative.
Hearing the cries of credit unions frustrated with what some say is the cumbersome process to become an SBA lender, the agency set out to streamline the procedure in August 2008.