WASHINGTON — Small businesses may be on the cusp of experiencing a lending tightening phase, but credit unions may be able to provide some relief, Mike Schenk, CUNA senior economist, suggested in a Aug. 7 Wall Street Journal article.

The article discusses ways small businesses can “weather a credit crunch” as banks become more nervous about loan defaults. So far, restrictions are impacting the consumer and corporate loan market, but industry watchers fear those limits will soon extend to the small business sector, according to the article.

“Small businesses also can turn to credit unions, which are nonprofit institutions owned by their depositors,” the article reads. Schenk told the publication that credit unions tend to make smaller loans than banks as they continue their entry into the small business market.

“We are willing to make loans that for-profit institutions generally aren't willing to make,” Schenk said.

Community banks, credit unions and other smaller lenders “often lean more heavily on their knowledge of the local economy and the would-be borrower's business model and track record of running or launching businesses,” according to the article.

In addition to turning to credit unions, the article recommends small business owners picking a bank that caters to their situation, look for lenders with programs aimed at specific types of small businesses and look for lenders with programs aimed at specific industries. Keeping detailed financial records and being prepared to put up personal assets like homes as collateral are also viable ways to assure lenders, the article suggested.