Small businesses turn to credit unions for financing

Small businesses are turning to credit unions for business loans in larger numbers than ever before, according to data from the National Credit Union Administration (NCUA).

Credit unions don’t answer to stockholders, only its members. That, in turn, makes a credit union more responsive to its members’ needs.

Small business lending represents about 5% of Redstone's total loans.

Redstone’s primary business member is defined as an owner manager with 10 or fewer employees and annual sales of less than $10 million in manufacturing, real estate, investments, professional services, non-profit and religious organizations.

Its lending process includes a mentoring program that qualifies small businesses for loans and helps prepare them for success.

Business Alabama, interviewed Redstone’s Joseph Newberry, president and CEO, about how it is meeting small business loan needs.

The article also features Alabama Credit Union and one of its business members, RedX Fitness of Decatur, AL., and Eric Wharton, a Redstone business member and owner of Madison Collision Center.

Wharton said he liked what he heard from a Redstone commercial banker and made the switch to Redstone.

“The credit union is just great,” he says. “I’ve been to other banks before, but the credit union is the way to go. They have bent over backwards to help me. They’re informative. They respect my commercial account,’’ Wharton said.

Click here to read more from Business Alabama about business lending from Redstone and other credit unions in Alabama.

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