Choices Federal Credit Union was nervous but interested about offering a microenterprise loan program at the suggestion of a local foundation.
The $474,000 credit union in St. Louis struggled to structure a product that would be large enough in scale but also be acceptable to regulators, according to the Missouri Credit Union Association.
Last fall, the answer came from a meeting between Choices and its long-term industry mentor, the $211 million St. Louis Community Credit Union. Leaders on each side developed a program in which Choices would introduce a microenterprise product to its borrowers, and St. Louis Community would agree to purchase a 90% participation in each loan closed under the program.
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