SOUTH JORDAN, Utah — Faced with an ongoing credit crunch, small businesses looking for capital should consider credit unions as an alternative, according to one prominent CUSO.
Member Business Lending LLC has been keeping track of the media buzz on small business owners seeking financing options. Some of the articles have noted "potentially risky" financing alternatives to bank loans such as credit cards, peer-to-peer network personal loans and loans from family and friends.
"Even the often-mentioned microlender has its drawbacks–loans are often a maximum of $5,000 and approval may take as long as two months," the CUSO said.
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MBL also pointed to Sen. Charles Schumer's (D-N.Y.) recent proposal calling on the federal government to temporarily make direct loans to small businesses. Processed through the Small Business Administration, the loans would be available during the estimated month it would take for bailout funds to enter the market.
"[What's]…missing is the opportunity credit union loans can offer businesses," said the CUSO, which noted that its member business loan volume for September was up 68% over September 2007.
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