SOUTH JORDAN, Utah — The discussion over who serves small businesses better–credit unions or banks–was the topic of a June 2007 article in Utah Business Magazine.
In the article, "The Choice is Yours," two business owners were interviewed. One, a light manufacturing company, found financing success at a credit union while the other, a restaurant start-up, sought out a local bank.
Curtis Anderson, vice president of business banking for $2.3 billion Mountain America Credit Union, told the publication that credit unions serve a niche not courted by most banks.
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"We made a conscious decision to do smaller, and those businesses and startups are a place to start because that market isn't being served," Anderson said.
Anderson also said members enjoy the "local focus" a credit union offers.
"We just had a guy who was dealing with a bank come to us for a loan. He got so far in the process with the bank and then it had to be shipped off to corporate. He had just spent six weeks with them and then the decision making went to a whole different direction."
Kent Moon, president/CEO of Member Business Lending, LLC, is optimistic that banks and credit unions can work together to bring capital to small businesses in Utah.
"We can't sit back and be critical and try to restrict capital," Moon told the publication. "We have to be effective, be positive and be proactive."
The article said, "Banks are the more traditional route and process large amounts of SBA loans every year. Credit unions may seem approachable to a first time business owner, yet they can lack the service record and reputation of many big banks." While banks and a growing number of credit unions offer services such as payroll and treasury management for small businesses, many credit unions offer products specifically designed to help a start-up such as smaller lines of credit and loans.
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