First Commonwealth Expands Offerings for Small Businesses
The credit union adds two new commercial loan options, reflecting the growing population in the area.
First Commonwealth Federal Credit Union’s headquarters in Allentown, Pa. is one of the few places in the eastern part of the state, or even in the entire state, where there has been a steady growth in its population as people move away from the more expensive metro areas of Philadelphia and New York.
According to the U.S. Census Bureau, roughly 6,000 people have been moving to the area each year during the past 10 years.
To help fund the growing demands of existing and new small businesses in the area, the $1 billion First Commonwealth has partnered with the Small Business Administration (SBA) to administer new commercial loan options through the SBA 7(a) and SBA 504 programs, according to an announcement from the credit union Thursday.
The SBA 7(a) loan program will allow First Commonwealth to offer small businesses loans of up to $5 million with special requirements that include short- and long-term working capital, refinancing of current business debt, as well as money for establishing a new business or assisting in the expansion of a current business.
The SBA 504 program will provide a longer term, fixed-rate financing up to $5.5 million for up to 25 years. This program will allow small business owners to secure commercial real estate locations and other fixed-asset purchases in the community.
These new small business-lending options come after the credit union launched its “Business First by First Commonwealth FCU” program last year, which was created to give personalized business solutions and concierge banking services to business members throughout the Allentown area.
First Commonwealth Chief Lending Officer Terry Grier explained the credit union’s reasons behind the new lending efforts. “Your business is our business, and it is our mission to empower our business owners to achieve their goals. Through our Business First program and partnership with the SBA, we offer a powerful combination for business owners by providing a trusted partner to help guide and provide comprehensive solutions to grow their business,” Grier said.
First Commonwealth experienced a growth spurt of its own recently. On April 1, the credit union acquired the $42.8 million, Phillipsburg, N.J.-based Baker Federal Credit Union. The acquisition expanded its field of membership base to more than 74,000 as well as opening the credit union’s first branch in New Jersey.