CDFI grant funding has helped Innovations Financial Federal Credit Union ($651.9M, Panama City Beach, FL) expand access to capital for small businesses in and around the Florida Panhandle.

A pre-COVID grant helped the credit union launch a microlending program that provides up to $50,000 to small businesses in its market and continues to make a difference in the region.

The Problem

The bank landscape in Florida has substantially shrunk since the Great Recession. Many small and mid-size local banks have closed their doors or merged with larger entities, leaving a void in the commercial lending space.

Hurricane Michael in 2018 exacerbated the problem when it decimated the Panama City area and dealt a death blow to local businesses across the region.

The Solution

With CDFI grant funding, Innovations Financial implemented a microlending program for small businesses and entrepreneurs starting new businesses. The credit union made up to $25,000 in unsecured funds available and up to $50,000 available for loans secured by homes, equipment, or real estate. Both loans were available to borrowers with a minimum 650 credit score and business plan proforma or documented LLC.

“None of these are loans you would make under traditional financing,” says David Powell, chief operating officer. “Because of the small dollar amount, it truly is the mom and pop shops. It’s the guy working at a company and doing a side gig who wants go out and do his own thing. It’s the husband and wife who want to start a side gig.”

The credit union can offer a term loan or a line of credit for the $25,000 option as long as borrowers meet the minimum 650 credit score and other stipulations. It prices those loans between 10.5% and 14.5%. The collateral-secured loans it prices at market rate.

Loan applications have been evenly split between new and existing members, and some applicants have told loan officers they were referred by their bank because the institution couldn’t make the loan.

The Results

Although the national economic picture has been rocky, Powell says Florida’s economy behaves somewhat differently because of the heavy influence of tourism and the military.

“If you boil it down to the Panhandle, we’re even more insulated than the rest of the state,” the COO says. “Then boil it down to Bay County and the surrounding counties, and we’re even further insulated.”

According to Powell, steady economic growth in the past decade spurred on by people and businesses moving into the region has helped fuel the microlending program. The credit union has made more than $8 million in microloans since 2018, and with a default rate of just 6%, the program has been “wildly successful.”

“There’s hardly anyplace small businesses can go to get money to start up, so we were absolutely fulfilling that need in all the areas we serve,” Powell says.

A partnership with the Small Business Development Center, offered through the University of West Florida, has helped drive applications. Many startups and small businesses work with the center on business planning, and the center frequently refers those entrepreneurs to the credit union.

And even when some borrowers have gone out of business, they’ve continued to pay back the credit union, says Powell.

“It’s been pleasantly surprising to see the level of commitment,” he says. “I think what saved us is that 650 credit score cutoff, which I would allege tells someone’s character to a good degree. Even if they go out of business, they understand they’re on the hook and don’t want their credit to suffer. And because the loans are generally small, they can generally afford to pay it.”

Lessons Learned

A proactive collections process has contributed to the program’s success. Rather than waiting until the end of a 15-day grace period to reach out as the credit union does on normal business loans, credit union representatives call these borrowers to check in within a few days of a payment’s due date.

“These small business loans are generally not sophisticated borrows,” Powell says. “Lots of times they just forget to make the payment and need a reminder. We’ve found it to be a best practice to start collections with these microloans very early in the past-due process. We don’t want to let them get behind because once they’re behind they can’t catch up.”

The partnership with the Small Business Development Center has been crucial to the program’s success, Powell says, and he advises other credit unions to investigate similar offerings in their own markets. But even with that help, credit unions need to be sure they understand applicants’ business plans as well.

“Be sure you understand how to manage and control that risk,” he says. “How to read people’s credit reports, how to understand what they’re telling you in the business plan, how to collect on the back end, and so forth.”

The post Innovations Financial Bets Big On Small Business Lending appeared first on CreditUnions.com.

The Innovation Series is celebrating 2026 with a diverse slate of finalists whose breakthroughs are reshaping member experience, data and business intelligence, lending, employee engagement, fraud prevention, and digital member engagement — all with the power to help credit unions thrive in a rapidly evolving marketplace. Register for the Innovations In Reimagining The Lending Experience webinar  on Thursday, March 12th at 2PM EST.

Read on to learn more about this year’s finalists in lending:  Cloudvirga, Enable Technologies, Fuse, Suntell.

Cloudvirga:

Describe your Innovation:

Tropos is a configurable loan point-of-sale (POS) platform that sits in front of the loan origination system, connecting the core and third-party services through a unified, API-driven experience. The platform manages borrower and sales staff interactions, data intake, document collection, and real-time validations while seamlessly passing clean, structured data into the LOS. By acting as an intelligent engagement and integration layer, Tropos improves data quality, reduces rework, and enables credit unions to deliver faster, more consistent digital lending experiences without modifying their core or downstream systems.

What opportunity or challenge does it address?

Credit unions face increasing pressure to deliver modern, digital-first lending experiences while operating on fragmented legacy systems that were not designed to work together across all loan types (residential mortgage, consumer, auto, etc). Disconnected cores, LOS platforms, and third-party services often create inconsistent member experiences, duplicate data entry, and operational inefficiencies that slow decisioning and funding. Tropos addresses this challenge by acting as a flexible point-of-sale layer that unifies borrower and staff interactions, standardizes data capture, and integrates seamlessly with existing systems — allowing credit unions to modernize lending experiences, improve data quality, and scale efficiently without costly core or LOS replacements.

How does it increase member value?

Tropos increases member value by removing friction from the lending experience and giving members a faster, more transparent path from application to funding. By unifying data capture, document collection, and third-party integrations within a single point-of-sale experience, Tropos reduces repetitive questions, minimizes errors, and shortens turnaround times. Members benefit from intuitive digital interactions, real-time status visibility, and fewer follow-ups — while credit unions deliver a consistent, high-quality experience that reinforces trust, loyalty, and long-term member relationships.

What differentiates this innovation from competitors?

Tropos is differentiated by its role as a true system-agnostic point-of-sale layer that decouples the member experience from the underlying LOS, core, and third-party providers. Unlike POS solutions that are tightly coupled to a single LOS or require time-consuming and expensive customization, Tropos uses easily configurable workflows, API-driven integrations, and real-time customizations to adapt to each credit union’s existing ecosystem. This allows credit unions to modernize the member experience, maintain flexibility to change downstream systems, and avoid vendor lock-in—while preserving control over data, compliance, and operational processes.

Enable Technologies:

Describe your innovation.

Enable is redefining origination by bringing deposits and loans together on a single, AI-driven platform. We’ve built a unified experience that works seamlessly across digital, branch, and call center channels, powered by AI that guides both end users and frontline staff in real time. It’s not incremental improvement but rather it’s a fundamental shift in how financial institutions originate full long-lasting relationships.

What opportunity or challenge does it address?

For years, credit unions have been forced to operate with fragmented systems. One for deposits, another for lending, whereby creating friction for members, staff, and operations teams. Enable eliminates that disconnect. We address the growing need for speed, simplicity, and intelligence while helping institutions keep pace with rising expectations, compliance complexity, and competition from larger banks and fintechs.

How does it increase member value?

Members and business owners get faster decisions, fewer handoffs, and a more intuitive experience whether they’re opening an account, applying for credit, or bundling products in a single journey. Behind the scenes, AI helps surface the right products, answers questions instantly, and reduces errors which ultimately translates into better service, stronger relationships, and higher satisfaction.

What differentiates this innovation from competitors?

Most platforms still treat deposits and loans as separate workflows. Enable was built from day one as a unified platform with AI embedded at the core – not bolted on. As a member of the executive leadership team, I’ve had the great privilege of seeing Enable evolve rapidly alongside our amazing client partners — such as Nuvision Federal Credit Union ($3.9B, Huntington Beach, CA) and Meriwest Credit Union ($2.1B, San Jose, CA) — incorporating real-world feedback into smarter automation, conversational AI, and flexible configuration. That pace of innovation and our ability to deliver value quickly is what truly sets Enable apart. What further differentiates Enable is the experience behind the platform. Our founders and executive leadership team bring decades of hands-on experience partnering with more than 50+ credit unions with a proven track record of delivering on commitments and turning vision into reality. That history of execution exellence and the long-standing trust we’ve built with innovative credit union partners is something we take great pride in and continue to earn every day.

Fuse:

Describe your Innovation:

Fuse is an AI native loan origination system (LOS) and account opening (AO) for credit unions and other consumer lenders. Fuse is backed with $25M+ from the top-tier investors behind Chime and Alloy, being used by 100+ institutions including Navigant Credit Union ($4.1B, Smithfield, RI) and is the one LOS that FIS re-sells to top 50 banks (selected after reviewing 10+).

Credit unions need to automate to compete with the fintechs and top 10 banks. All traditional LOSs say their platform can deliver “up to 100% automation,” but since that has not materialized in decades, credit unions are rightfully skeptical. This is why Fuse sells its proactive automation money-back guarantee:

• Proactive: Many CUs stall on automation because their staff is overwhelmed with the needs of the day to day. We know people are 71% more likely to go to the gym if there’s a personal trainer nudging them, and Fuse implemented a similar nudge. Every two weeks, the CU meets with a Fuse automation specialist who showcases the automation opportunities identified by our Proactive AI Lending Copilot, and the aligned automations get implemented by either Fuse’s team or the CU. The goal is to get 1%+ more automated every week, leading to >60% true improvements year on year.
• Money-Back Guarantee: CUs are skeptical of being promised opportunities that then do not materialize. That is why Fuse implemented the first industry money-back guarantee in both product capabilities and company practices. Our contract incorporates guarantees so they do not need to rely on salesmanship or nice words. Some examples:
  • Product Capabilities: The system is able to decision on 100% of their core data and board 100% clean applications to their core without post-boarding clean up. The system can lead to 100% auto-decision based on any field or source of data.
  • Company Practices: Integrations are free forever (install and maintain), can be self-built by the client in a 100% open ecosystem or built by Fuse with a guarantee of delivery in under one month, and can be bought directly from partners rather than through mark-ups of up to 2x.
  • Implementation risk coverage: Fuse deploys its own team to run the full implementation rather than relying on CU staff, and assumes the risk on timelines by tying commercial commitments to agreed go-live dates, including covering additional costs from the prior LOS if those contracts need to be extended.
  • Ongoing improvements: After go-live, Fuse contractually commits to meeting every two weeks to review and implement new automation opportunities and provides real-time chat support with short SLAs and an assigned team that knows the institution’s configuration and can unblock issues quickly.

What opportunity or challenge does it address?

The core issue is automation skepticism arising from failed vendor promises, forcing CUs into costly manual processes that hinder staff focus and member experience. Fuse counters this with an AI-native LOS platform offering proactive automation with a money-back guarantee. This shifts risk to Fuse, ensuring guaranteed, measurable improvements in efficiency, staff utilization, and member satisfaction through modern technology.

How does it increase member value?

• Streamlined process with no rekeying: Fuse pulls data directly from the core, so members are not asked to enter the same information twice.
• Flexible channel hopping: Members can start an application online and finish it in the branch, or the other way around, without losing progress.
• More valuable staff interactions: With staff work reduced two- or three-fold, employees can focus their time and energy on sharing advice and cross-promotions.

What differentiates this innovation from competitors?

• • Model: Legacy LOS deliver a system, then rely on tickets and internal bandwidth. Fuse takes ownership for automation outcomes, not just feature delivery.
  • Technology: Our AI copilot continuously scans underwriting and funding workflows in production to surface concrete automation opportunities. Institutions can move toward near-total automation while setting their own pace and risk thresholds.

• Operating cadence: Every two weeks, our team meets with the credit union, reviews real data and brings specific rule, workflow and integration changes, then helps implement them so improvements actually go live.
• Alignment with credit unions: We do not charge for integrations and keep an open ecosystem, so credit unions can use the partners and tools they prefer without extra friction or hidden costs.

Suntell:

Describe your Innovation:

Square 1 Credit Suite is Suntell’s purpose-built credit lifecycle platform for member business lending at credit unions. It was designed specifically to help institutions bring MBL in-house and scale it responsibly, rather than relying on adapted bank systems, outsourced workflows, or external decisioning models.

Square 1 standardizes how business credit is evaluated, documented, and reviewed, allowing lending teams to make faster loan decisions while maintaining consistent credit standards. By creating clarity across lenders, reviewers, and leadership, credit unions are better able to explain decisions, support exam expectations, and deliver a more predictable experience for business members.

The innovation behind Square 1 is its focus on credit discipline as a growth enabler. Credit unions retain ownership and control of their lending process, enabling them to modernize MBL operations in a way that strengthens member relationships rather than outsourcing them.

What opportunity or challenge does it address?

Credit unions face increasing demand for member business lending, but many struggle to grow MBL without slowing decisions or losing consistency. Manual processes, fragmented tools, and lender-to-lender variability often lead to longer turnaround times and difficulty clearly explaining outcomes to members, boards, and examiners.

To manage this complexity, institutions often rely on manual workarounds, spreadsheets, email-driven processes, or disconnected systems to bridge gaps in the lending process. While these approaches can help in the short term, they can limit control, reduce transparency, and make it difficult to scale MBL in a sustainable way.

Square 1 addresses this challenge by giving credit unions a structured framework to manage business credit internally. The opportunity it unlocks is responsible growth. Institutions can move faster, maintain disciplined credit standards, and deliver more consistent experiences for business members without introducing unnecessary complexity.

How does it increase member value?

Square 1 increases member value by improving how credit unions respond to business lending requests. By standardizing credit analysis and credit file content, lending teams reduce rework and delays, resulting in faster loan decisions and clearer communication with members.

For business members, this creates a more predictable and transparent experience. Decisions are based on consistent credit standards rather than individual interpretation, which builds trust and confidence in the credit union as a reliable financial partner. Members spend less time waiting for updates and more time focusing on their businesses.

By enabling credit unions to manage member business lending internally, Square 1 also strengthens long-term relationships. Credit unions maintain direct ownership of decisions and outcomes, allowing them to support local businesses with dependable access to credit while staying true to their cooperative mission.

What differentiates this innovation from competitors?

Square 1 is differentiated by how it aligns with the operational reality of member business lending at credit unions. In many institutions, MBL teams operate with distinct workflows and priorities that differ from enterprise-wide banking systems.

Square 1 was designed to deliver value within that environment by providing a cohesive credit lifecycle framework for underwriting, credit file consistency, and portfolio oversight. Institutions are able to improve credit discipline and decision speed without first undertaking complex, enterprise-scale integration projects.

This allows credit unions to strengthen member business lending without overengineering their technology environment. Teams can focus first on credit consistency, decision quality, and adoption, while maintaining flexibility to evolve processes and integrations over time as needs change.

Check Out The Other Innovation Series Categories

• Employee Enablement
• AI-Powered Member Experience
• Data And Decision Intelligence
• Fraud Prevention And Resolution
• Digital Member Engagement

The post Meet The Finalists For The 2026 Innovation Series: Reimagining The Lending Experience appeared first on CreditUnions.com.

Aggieland Credit Union, a subsidiary of Greater Texas Federal Credit Union ($935.6M, Austin, TX), has supported business students for more than a decade as a part of the May’s Business School Integrated Business Experience (IBE) program. The semester-long course requires post-graduate students to create and operate a business, effectively allowing them to “learn business by doing business,” according to the university.

“We’re proud of the evolution of this program,” says Sidney Henderson, Aggieland’s senior vice president of marketing. “It started out small, but now it’s a big part of our identity and our community impact strategy. We get to be part of something meaningful. When a student says Aggieland Credit Union helped me start my first business, that’s a powerful statement.”

Shark Tank In Aggie Country

At the beginning of the semester, students break into teams that must present a business idea and a charity of choice. They then pitch their ideas to a panel of Aggieland Credit Union staff members, who challenge the business models, marketing plans, pricing, and more.

“We push them to think deeper,” Henderson says. “Do they have a compelling story? Is their nonprofit mission integrated into the brand? Are they doing something creative with their design, their sourcing, or their packaging?”

For example, teams gravitate toward apparel year after year. So, the judges’ panel challenges them to define what makes their shirt different? Why should someone choose this shirt over another? In recent years, teams have also pitched more digital concepts, things like e-commerce or online-based services.

Once the panel approves a project, the credit union provides a zero-interest loan to fund it. Indeed, a team’s ability to repay that loan from the revenue it makes is one success factor for the class.

“That’s been the biggest challenge, making sure the students understand the responsibility of the loan,” Henderson says. “Even though it’s a zero-interest loan and we’re flexible, it’s real money, and they have to pay it back.”

Although the credit union has never had a team default, it has had to intervene when students overordered supplies or didn’t calculate costs correctly.

“That’s part of the learning experience,” Henderson says. “We want them to experience what entrepreneurship is really like, not just the fun, exciting parts but also the hard parts.”

Once the team pays off the loan, students donate the remaining profits to a nonprofit organization of their choosing.

The Biggest Year Yet

The fall 2024 IBE program presented several changes. For starters, students were allowed to work on an extended timeline that enabled them to sell during the holiday season. Naturally, that boosted sales and visibility. Additionally, the credit union increased the loan amounts available to students, giving teams more resources to nail down an effective strategy and afford higher-quality products.

And for the first time, students were allowed to use official Texas A&M brand marks, a change for which the credit union’s CEO, Howard Baker, strongly advocated.

“The inability to use those marks has been a big challenge over the past decade,” Henderson says. “Our CEO had a frank conversation with the university saying we can make this so much better for the students. For us, it’s not just about selling the credit union, it’s important that we’re adding value for the students.”

The result? Participating teams generated a record $137,305 in revenue, with more than $57,000 donated to Austin nonprofits. Donation sizes ranged from $926 to $17,512.

“That’s all student generated,” Henderson says. “That’s what’s so impressive.”

As the official financial institution of Texas A&M, Aggieland Credit Union uses this program to nurture its relationship with the university while supporting the next generation of business leaders.

“Financial education is so key to our mission,” Henderson says. “It’s important to us that we give these students a real-world experience. Plus, the fact they’re tying in philanthropy is important from a credit union perspective.”

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A CDFI since 2018, Lake Trust’s microloan offerings include business vehicle loans, signature loans, lines of credit, secured loans, and business credit cards — all designed to address critical funding gaps in small business lending. Since launching these programs in 2019, Lake Trust has provided more than $22 million in loans, fostering the growth of local entrepreneurs like custom bow-tie maker Nikhil in Detroit and Marcus Leslie, whose cheesecakes transitioned from farmers’ markets to major retailers.

By simplifying the lending process and building relationships within the community, Lake Trust continues to empower small businesses to thrive.

Watch the video to hear more inspiring stories and learn about the credit union’s innovative approach to advancing Michigan’s entrepreneurial spirit.

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