MECHANICSBURG, Pa. — It's probably no surprise that business owners frustrated with being turned down for funds to keep their companies afloat are turning to non-traditional lenders.

Omar Shute is the executive director of the Cumberland County Economic Development division, which administers the Cumberland Small Business Fund, an initiative that helps micro businesses. The $1.5 billion Members 1st Federal Credit Union recently donated $20,000 to the loan program, which currently has $150,000 available to borrowers.

So far, demand for CSBF loans has been "pretty steady" given the reluctance by some lenders to issue credit or capital to small businesses, Shute said. He predicted that loan requests will pick up.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.