The $379 million Lafayette Federal Credit Union is the latest to partner with an organization to offer government receivable services to its business members.
Launched in February, the Columbia, Md.-based Hitachi Government Finance provides working capital to businesses that provide goods and services to federal agencies and select local governments or those who work as subcontractors to large government prime contractors, according to its parent company, Hitachi Capital Corp. in Norwalk, Conn.
The new division helps clients mobilize for new contracts, make payroll, purchase supplies and equipment, and pursue expansion opportunities, Hitachi said.
Lafayette FCU, based in Kensington, Md., said through the new partnership, it hopes to target those with monthly financing needs in the range of $50,000 to $20 million.
Over the years, the credit union has been a vocal advocate of raising the 12.25% member business lending cap.
In December 2013, Lafayette President/CEO John Farmakides testified before the House Subcommittee on Economic Growth, Tax and Capital Access urging legislators to provide more flexibility to grant business loans.
Farmakides' predecessor, Michael Hearne, worked at the SBA's Office of the Chief Financial Officer for seven years and supervised the agency's Financial Improvement Plan, which resulted in the development of the financial data structure and all credit program subsidy models.
After the SBA, he worked as an independent consultant with SBA lenders to analyze their loan portfolios.
Hearne, too, testified before Congress to lift the MBL cap.
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