WASHINGTON — As some predict tightening of loans to small businesses, entrepreneurs might want to consider credit unions as an alternative, Mike Schenk, CUNA senior economist, suggested in today's Wall Street Journal.
The article discusses ways small businesses can "weather a credit crunch" as banks become more nervous about loan defaults. So far, restrictions are impacting the consumer and corporate loan market but industry watchers fear those limits will soon extend to the small business sector, according to the article.
"Small businesses also can turn to credit unions, which are nonprofit institutions owned by their depositors," the article reads. Schenk told the publication that credit unions tend to make smaller loans than banks as they continue their entry into the small business market.
Recommended For You
"We are willing to make loans that for-profit institutions generally aren't willing to make," Schenk said.
Community banks, credit unions and other smaller lenders "often lean more heavily on their knowledge of the local economy and the would-be borrower's business model and track record of running or launching businesses," according to the article.
© 2025 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.
