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.
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"Right now, small enterprises are getting tired of waiting and will want to move forward [with other lenders]. We're forecasting a spike in the future."
In 2005, Members 1st was the first financial institution to partner with the Cumberland Business First Loan Partnership Program, another county effort intended to stimulate the expansion and assist in the retention of small businesses, Shute said.
"We have a very good relationship [with the county]," said George Nahodil, executive vice president, retail delivery and marketing at Members 1st. "Part of our mission and values is to support our communities, not only through charitable contributions, but also economic development, which brings small businesses into the region."
Nahodil said one out of four of the CU's 150,000-member base lives in Cumberland County.
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