EUGENE, Ore. — Bent on reaching out to young and “less affluent”borrowers with payday alternatives, SELCO Community Credit Unionhas opened a separate branch-type facility in nearby Springfield todraw new members while soliciting the nontraditional loans.

The new “Lending Outlet,” as it is called, is located in aformer bank building and was formally opened last week with moresuch facilities planned for future sites in the 11-branch SELCOmarket of central and western Oregon.

The three-employee facility, which has been on the drawingboards for a year, is being promoted as an innovative approach by aCU to provide a comfortable setting for those borrowers who knowlittle about CUs,

“The Lending Outlet fills a growing need for fast andhassle-free financing among younger and less experiencedborrowers,” explained CEO Ava Milosevich.

The Lending Outlet will provide traditional types of financingsuch as auto, consumer and home improvement loans, “but with atwist since we have options for those who might not fit into atraditional mold,” explained Kristi Lahtinen, sales manager of theOutlet, which is being made into a separate division of the CU.

The facility, housed in the old Citizens Bank building now ownedby the CU, was officially opened June 30 and so far has extended awhopping $485,000 in loans during the first month.

“Our goal was $100,000 so for certain we've found a niche thatneeds our services,” said Bonnie B. Larson, vice president ofmarketing.

In addition to serving “the retail walk-in borrower,” the Outletstaff, said Larson, intends to partner in early 2007 with localhome-improvement service provider, carpet, appliance stores andothers to direct customers to the Outlet for financing.

The Lending Store is not designed to serve as a branch forexisting members “though we will not turn them away,” saidLarson.

Existing members of the $670 million SELCO will be able to getthe CU's current low-interest, payday product called “Quick Draw”at the Outlet. That product has a $500 cap and is offered on a30-day basis.

Larson said SELCO is using print, direct mail and bus ads topromote the Outlet, but is not using the more expensive TV or radiocommercials.

He added that it was sheer coincidence that SELCO announced itsprogram at the same time Gov. Ted Kulongoski was unveiling astatewide Web site and 800 hookup to link potential paydayborrowers with CUs.

“It's a serendipitous connection,” added Larson. SELCO, it wasnoted, was one of the early CUs to provide alternative products inline with the state's program of leaning on CUs to offer them.