Of the 170 intermediaries in the SBA's micro loan program, only two credit unions are currently involved. The agency said it is working hard to increase those numbers.
The $55 million Alternatives Federal Credit Union and the $246 million Self-Help Federal Credit Union have been providing the loans since 1999 and 1992, respectively. The SBA said it has moved loan processing from a centralized location to district offices and increased marketing efforts to boost program participation. The American Recovery and Reinvestment Act recently provided an additional $50 million for loans and $24 million for technical assistance.
"There is a natural overlap for credit unions," said Grady Hedgespeth, SBA director of office of financial assistance, on the indus-try's reputation with micro lending. "With the absence of capital, [small businesses] are looking for resources. Credit unions have been close to the ground on these issues for years."
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