As consumers navigate these record-breaking holiday costs, credit unions across the country are stepping in to make a meaningful impact through creative financial solutions, philanthropic efforts, and community programs. Check out the standout efforts below.

Collaboration Makes For Meaningful Impact

Every year, a cohort of Oklahoma credit unions joins forces with a different local nonprofit to make a positive impact on the Oklahoma communities they serve. This November, 10 credit unions teamed up with Rebuilding Together OKC to make home repairs for a low-income senior and veteran.

Sarah Flanagan, manager of The WEOKIE Foundation, says the collaboration has been the highlight of her year.

“My favorite part of this experience was walking up to the home and seeing volunteers proudly wearing their credit union shirts working side by side to make a difference in this individual’s life,” she says.

Forty-two volunteers contributed a combined 121 hours across the day, making repairs to the home’s siding, floors, countertops, and more.

In a local news segment, homeowner Kent Murphy shared his home had been in his family since his grandparents.

In Minnesota, a day of service launched in 2013 by Affinity Plus Federal Credit Union ($4.4B, St. Paul, MN) has since blossomed into a multi-state initiative. Today, the Minnesota Credit Union Network (MNCUN) sponsors the initiative under the CU Forward Day banner.

Andrea Molnau serves as the director of public engagement and strategic initiatives for the MNCUN. She says the sizable impact that comes from dozens of credit unions working in tandem demonstrates how the industry can amplify its power to make a difference.

“It feels good to put some good in the world,” Molnau says. “That’s part of the attraction of the day.”

MNCUN has packaged the program and made it available to other states, with Illinois, Michigan, Wisconsin, Pennsylvania, Maine, and others now also carrying the mantle. The toolkit includes information on the day itself, how to promote it to credit unions, how to organize around it, what data to collect, sample media materials, and more.

Read more about this multi-state day-of-caring initiative in “There’s Nothing Random About These Acts Of Kindness.”

Seasonal Solutions Ease The Strain

Credit unions are also stepping up ahead of the holidays with limited-time promotions and relief programs.

First Choice Credit Union ($77.1M, New Castle, PA) is offering eligible members the opportunity to skip a personal or auto loan payment through Jan. 30, 2026. Sierra Pacific Federal Credit Union ($176M, Reno, NV) is running a similar promotion through the end of the year on any one qualifying loan payment.

Holiday loans are another popular tool to ease the financial burden of this time of year. AmeriCU Credit Union ($2.8B, Rome, NY) recently announced a holiday loan program that provides up to $5,000 on an unsecured personal loan with rates as low as 5.75% APR.

Other credit unions mix and match multiple seasonal offerings. CPM Federal Credit Union’s ($673.2M, North Charleston, SC) “Holiday Happenings” include a holiday loan special, a skip-a-pay option, and a community-giving campaign.

Credit unions aren’t reserving innovative and impactful products solely for the holidays, though.

Earlier this year, First Alliance Credit Union ($284.4M, Rochester, MN) launched a savings certificate designed for depositors who want their money to not only earn interest but also actively support community-impact lending. The minimum deposit for the Impact CD is $100,000 and term options include five-, seven- and 10-year certificates with APYs ranging from 2.0% to 3.0% (although rates might change). Importantly, the credit union earmarks funds raised through these deposits for things like low-income mortgages and vehicle loans, small-business growth, under-banked or non-traditional credit profiles, and others seeking a “financial fresh start.”

“I’ve always said I see us not as a financial institution but as a community development institution that happens to offer financial services,” says CEO Brent Rempe.

Read more about turning private prosperity into shared possibility in “First Alliance Debuts Mission-Driven Deposits.”

Foundations Fuel Community Giving

Credit union foundations play an invaluable role in the industry, and the season of giving naturally keeps many executive directors and their teams extra busy.

In Utah, the Mountain America Foundation solicited public involvement in this year’s Giving Tuesday campaign. The foundation will award $1,000 grants to 28 nonprofits, with organizations selected through community voting that took place from Oct. 20 to Nov. 14.

“By voting, our members, employees, and the public, can help strengthen organizations that are making meaningful contributions in our communities,” says Suzanne Oliver, executive director of the Mountain America Foundation. “We are eager to see where the $28,000 in funding will go. Together, we can uplift lives and build brighter futures.”

Read more about Mountain America’s foundation work in “From Foster Care To Financial Wellness.”

In Louisville, KY, the Park Community Foundation’s Pathways to Prosperity grants fund projects backing education, financial wellbeing, and community. Since 2019, the foundation has contributed more than $580,000 to local causes that support these three areas of impact. The 10 nonprofits selected as grant winners for 2025 will receive $97,960 in total, with winners announced on Nov. 21.

“These organizations are small, grassroots nonprofits that are making a difference and changing lives in Kentucky and Southern Indiana,” says Shannon Kisselbaugh, executive director of the foundation.

Read more about how Park Community reimagines local philanthropy “How A Credit Union Foundation Builds Equity And Access.”

Real People. Real Impact. Real Credit Unions. Credit Unions are making a meaningful impact in their members’ lives, from gestures big and small. For proof, check out The Member Story Project on CreditUnions.com. Don’t forget to submit your own!

The post 3 Ways Credit Unions Ease Holiday Financial Stress appeared first on CreditUnions.com.

Leaders across every level of the organization rely on CreditUnions.com for trusted guidance and actionable insights underpinned by Callahan’s collaborative work with credit unions. Conversations with everyone from CEOs and board members to branch managers and specialists offer firsthand perspectives on the strategies, challenges, and innovations shaping the industry today.

CreditUnions.com highlights six critical roles cooperatives might be overlooking. Filling these gaps is essential for success in 2026 and beyond.

Chief Product Officer

At Bay Federal Credit Union ($1.8B, Capitola, CA), Brooke Morley focuses on streamlining implementation, bridging departments, and aligning product delivery with strategic goals.

That means monitoring things like new-product adoption rates, usage metrics, Net Promoter Scores, and more, along with asking critical questions about relevance, performance, and overall alignment with member needs.

“This role isn’t just about launching new products,” she says. “It’s about connecting dots across departments.”

Why It’s Important: This role is critical because it ensures that innovation doesn’t happen in isolation and that every product launch aligns with the credit union’s mission and delivers measurable value to members.

Read more.

Senior Vice President Of Loan Analytics And Automation

No matter the size, charter, or field of membership, every credit union wants to blend efficiency and member satisfaction while reducing risk.

That’s what Andy Henline has been tasked with as senior vice president of loan analytics and automation at State Employees’ Credit Union ($56.2B, Raleigh, NC). The role entails ensuring loan-related reporting for the board and management team are timely, while also equipping back-office loan-administration staff with tools information, and process automation to complete their daily tasks.

“We want automation to enhance the member experience but never replace the personal touch our people can provide,” he says.

Why It’s Important: Automation done right helps credit unions strike the balance between operational efficiency and personalized service. By streamlining back-office processes without sacrificing human connection, SECU can reduce risk, improve turnaround times, and deliver the member experience that sets credit unions apart.

Read more.

AVP Of Fintech And Mission Integration

Josh Rodriguez spent more than a decade at the helm of Missouri Valley FCU before its merger into West Community Credit Union ($494.8M, O’Fallon, MO). His new role at the combined institution blends fintech research and relationship management with ensuring the credit union is living and sharing its mission.

The role reflects his experience with IT and technology, his comfort managing people, balance sheets, and vendor relationships, and a passion for storytelling via podcasting.

“We want to bring our mission, vision, and values back to the forefront to inspire our staff and our community about how our credit union can make a difference for them,” he says. “Storytelling in podcast form and in training is how we’ll meet this challenge.”

Why It’s Important: In an era where technology and human connection must coexist, Rodriguez’s approach bridges innovation with culture. By pairing fintech research with authentic storytelling, he’s ensuring the credit union’s mission resonates with staff and members alike.

Read more.

Director Of Multicultural Engagement

Credit unions that aren’t tapping into the multicultural mix that exists in their markets could be missing major opportunities. Understanding the diversity present in a market is key to unlocking those opportunities, but it’s also a key part of building a superior member experience and making authentic connections.

At Mountain America Federal Credit Union ($21.5B, Sandy, UT), that responsibility falls to Jennifer Tarazon, the cooperative’s director of multicultural engagement.

“The population is changing, and we can either lead the way or fall behind,” she says. “The goal for the credit union is always to provide an exceptional member experience, but an exceptional member experience for you could be very different from what I consider an exceptional member experience. It’s important to go somewhere that is going to be culturally competent while serving you.”

Why It’s Important: Multicultural engagement is as much about relevance and growth as it is inclusion. By understanding and honoring cultural differences, credit unions can build trust, deepen relationships, and deliver experiences that truly resonate with every member. In a competitive market, cultural competence is a differentiator that drives loyalty and long-term success.

Read more.

Director Of Organizational Change Management

Change is inevitable, and organizations that plan for it rather than react to it position themselves for success.

At Desert Financial Credit Union ($9.1B, Phoenix, AZ), Allison Worthington is tasked with helping the entire organization adapt to any number of changes. The role requires not only deep interpersonal relationships but also understanding of a variety of business functions.

“My role addresses the challenge of change saturation,” she says. “It also addresses the challenge of surprising people with change and making change happen to people versus for people. We’re now able to plan intentionally for changes that are impacting our employees. Plan early, plan often, plan for resistance, and ultimately ensure we are bringing information that’s necessary to help somebody adopt change.”

Why It’s Important: Unmanaged change can erode trust, stall progress, and overwhelm employees. By approaching change intentionally and proactively, Desert Financial ensures clarity and support, turning potential disruption into an opportunity for growth and engagement.

Read more.

Director Of Financial Inclusion And Community Engagement

Balance sheets and operations are only one part of running a credit union. The softer side of the business arguably has a greater impact, and that’s where a role like this comes into play.

Steph Harrill Kyle has been director of financial inclusion and community engagement at University of Wisconsin Credit Union ($6.1B, Madison, WI) for more than three years, bringing to the role a background centered on financial literacy and an MSW in social work from Columbia University with an emphasis on social enterprise administration and school-based services.

That and other elements of her background are key to the credit union’s goals of advancing financial inclusion for the communities it serves.

“One of my favorite conversations is when people find out I’m a social worker,” she says. “They often ask, ‘Why would a social worker work for a bank?’ This opens the door to talk about the difference between a credit union and a bank. I explain financial inclusion is at the heart of social justice, so I believe there’s no better place for me to make social change than in my role with UW Credit Union.”

Why It’s Important: Financial inclusion isn’t a product offering — it’s a mission that shapes communities. By combining expertise in social work with financial literacy, Harrill Kyle ensures the credit union’s efforts go beyond transactions to create meaningful change. Her role demonstrates how credit unions can lead on equity and access and turn financial services into a platform for social justice.

Read more.

Is It Time For A New Role At Your Credit Union? Browse hundreds of ready-to-use job descriptions in the Callahan Policy Exchange, then tweak your favorites to make hiring as efficient as possible. Learn more today.

The post 6 Roles To Help Credit Unions Reach The Next Level Of Success In 2026 appeared first on CreditUnions.com.

Mountain America Federal Credit Union ($21.5B, Sandy, UT) and Capitol Credit Union ($220M, Austin, TX) have each found their own way to step up on behalf of this population. Although different in execution, both programs focus on the same goal: Give foster youth the tools, guidance, and confidence to thrive on their own.

Banking On A Better Start

The inspiration for Capitol’s work with foster youth came three years ago when CEO Pierre Cardenas was invited to a ceremony honoring former foster youth who had graduated from college.

“I decided that if we want to do good and really have an impact, we should focus all our resources and attention on one cause we can all agree on,” the CEO says.

The credit union connected with the Texas Department of Family and Protective Services (DFPS) around the time

“Anyone under the age of 18 is not liable for anything,” Cardenas says. “If you give a 16-year-old with no parents an account and anything goes wrong, it’s just a loss to the financial institution. So, as far as finding partners, there were no takers on it.”

But credit unions are known for saying yes when others say no. CCU told the state it would explore options and see what it could do.

“I didn’t realize how hard this was going to be,” Cardenas admits.

CCU spent more than a year engineering its PAL (Preparation for Adult Living) program. The result is a three-tiered account with built-in safeguards and financial education embedded directly into the mobile app.

• Tier 1: Youth open a savings account, receive $25 from the credit union, and earn another $25 by completing educational modules. Accountholders have an ATM card and access to a mobile banking app, but no checking privileges.
• Tier 2: After demonstrating responsible behavior over a period of at least six months, they graduate to a limited checking account with tight withdrawal limits and no remote deposit capture.
• Tier 3: As users enter adulthood and reach age 18, they can access broader services, including a fractional investment option that allows them to buy small amounts of stock.

DFPS monitors account balances for those who receive supplemental security income, so CCU added custom disclosures and worked with attorneys to design a secure but flexible system. Cardenas also appointed credit union staff members to serve as mentors. Calls related to these youth accounts route directly to a PAL team member, so those members always have access to the guidance, support, and practical advice.

The credit union estimates approximately 150 to 200 of these accounts are currently in use.

“We might be a tiny credit union in a market full of behemoths, but that doesn’t mean our impact has to be small,” Cardenas says.

A Hand Up, Not A Handout

The Mountain America Foundation, the charitable arm of Mountain America FCU, is dedicated to improving the education, health, and wellbeing of youth and families across its communities. Working with the Milestone Home, a transitional housing program for adults aging out of foster care, was a natural fit.

Suzanne Oliver, the Utah cooperative’s vice president of government affairs and the Mountain America Foundation, says it’s about more than just housing.

“These youth also need resources, guidance, and mentoring,” she says. “Most of us can call a parent, grandparent, or relative for advice, but these youth need trusted adults to fill that role.”

The opportunity began when a former Sandy city council member approached Mountain America leadership about a property that had been donated to use as the home. The property needed serious renovations, so the foundation supplied $50,000 in grant funding while local contractors donated labor. Together they rebuilt the kitchen and main floor, installed new windows, and transformed the house into a welcoming home.

Oliver was touched by the residents’ stories.

“Some had been living in a car or bouncing between friends,” she says. “The relief they felt to be safe and to have their own room — sometimes for the first time — was powerful. It was emotional to be involved.”.

Residents typically stay six to nine months. To practice budgeting and paying bills, residents pay a modest monthly rent of approximately $200 per month for the first three months; after that, rent increases by $50 each quarter. If funds remain at the end of their stay, the money helps with their move to permanent housing. A full support team is available to residents, including case managers and a therapist. Salt Lake County reports a 70%-80% success rate with participants achieving self-sufficiency after completing the program.

Looking ahead, Oliver hopes to expand the Mountain America Foundation’s involvement to include more financial wellness services.

“We’ve provided financial literacy to older teens in foster care before, and I want to follow up on offering it to Milestone participants,” she says. “It’s about getting them set up and started off well.”

Oliver emphasizes that none of this would be possible without the intentional, combined effort between public and private entities.

“It really was synergy,” she says. “The whole being greater than the sum of the parts.”

Local leaders hope the Milestone Home will eventually serve as a model for other communities nationwide.

The post From Foster Care To Financial Wellness appeared first on CreditUnions.com.

Top-Level Takeaways

• Although federal charters can easily move across state lines, some state-chartered institutions are taking advantage of local regulations that permit statewide fields of membership.
• Some credit unions prefer to get their name out via awareness campaigns, others promote themselves through community involvement and charitable giving.

Whether through mergers, acquisitions, or de novo branches, expanding across state lines has become increasingly common for credit unions. But such moves are easier said than done. Expanding across state lines takes time, resources, and a strategic mindset — and credit unions attempting it without all three could struggle to achieve their desired result.

For Mountain America Credit Union ($19.3B, Sandy, UT), its initial expansion strategy was born of necessity more than two decades ago. Utah is home to just 3.5 million people, and the credit union was hamstrung by heavy restrictions that limited service areas for state-chartered cooperatives. The switch to a federal charter in the early 2000s made it easier for leadership to pursue multi-state merger opportunities, although the credit union does not identify as a federal charter in its branding.

Subsequent mergers and member needs brought Mountain America into Arizona, Nevada, New Mexico, Idaho, and Montana. Today, the credit union has a presence in a total of six states.

Merging across state lines is “not for the faint of heart,” says CEO Sterling Nielsen.

“The reality is that it’s a lot of work,” he says. “If you don’t really have a good reason to do it, don’t do it.”

Every market has its own personality and culture, according to the CEO. From state holidays like Pioneer Day in Utah and Nevada Day to competitive market pricing for team members and products alike, it’s crucial to be aware of local differences and then hire staff who understand those nuances.

Mergers have allowed Mountain America to enter new markets with built-in support for existing branches; however, those facilities are not typically reflective of the credit union’s brand, Nielsen advises. But over time, investments in facilities and brand awareness have paid off. In Boise, for example, Mountain America has grown a $90 million foothold to more than $500 million.

Some credit unions will keep existing brands in place for a short time after a merger is completed, but Nielsen advises against that.

“It’s challenging to manage multiple brands,” he says. “We’ve made that mistake before. It’s best to make the cut right away and move on.”

Building and maintaining a unified culture across such different service areas requires good leadership — especially at the branch level, Nielsen says. Mountain America has evolved its structure over the years to include senior vice presidents, vice presidents, regional managers, and managers. Together, they ensure a unified approach and purposely overlap.

“Our senior leaders visit all the facilities on an annual basis,” Nielsen says. “We also fly in our leaders regularly to attend meetings to ensure we have time together face-to-face.”

Mountain America also leverages technology in its multi-faceted approach to communications. An intranet, morning meetings, quarterly town halls, and monthly leadership meetings help ensure team members at all levels receive consistent messaging — regardless of where they are located.

Building Awareness In New Markets

An individual approach to marketing in each state also helps build awareness and trust. For example, a new event center in Idaho Falls is now the Mountain America Center.

“It’s hard not to know us there,” the CEO says.

The credit union is also heavily involved with Boise State University and has made similar investments with Brigham Young University and Arizona State University, including football stadium naming rights. These large-scale sponsorships help create brand awareness, but Nielsen says word of mouth is what really makes the difference with recruiting new members.

“Investing in awareness is important, but most of our marketing is actually focused on giving back to students, education, and healthcare,” he says.

And if things aren’t working in one market, the credit union isn’t afraid to leave, Nielsen says. After each merger, Mountain America enters new markets with a time frame in mind during which management expects to operate profitably. Credit unions entering new states without merger partners should plan on a lot longer.

“You need to have a long-term appetite and understand it could be a five or even 10- year play in some of these markets,” he says. “It’s an investment, but once it does take hold, it can be very successful.”

Serving SEGs Leads To A Natural Expansion

United Federal Credit Union ($4.1B, Saint Joseph, MI) has long served both Whirlpool and Clark Equipment Company, large organizations with a foothold in multiple markets. Today the credit union is in seven states — many of them non-contiguous — and through mergers and organic growth it now has a presence in Michigan, Ohio, Arkansas, North Carolina, Nevada, Indiana, and, most recently, Pennsylvania.

“As a result of having done it for so long, we have developed a high level of competency in managing multiple states,” says Terry O’Rourke, CEO of United. “It was a great way for us to continue to grow.”

According to the CEO, the credit union’s strategic approach is to leverage the benefits of scale — including technology, product offerings, and expertise — while delivering a member experience that’s intensely personal and local.

O’Rourke cites two lessons in expanding. First, expansion markets are no less important than the credit union’s original market. And, second, it’s important to be intentional about ensuring teams in all markets feel connected.

“We act as a national credit union, not a Michigan credit union that happens to have locations in different states,” O’Rourke says. “We also ensure senior leaders, including myself, regularly visit each of our markets.”

Sensitivity around time zones is also important, as United must be prepared to serve employees across the country at all times. Management also allows for differences in each market in terms of branch hours, community involvement, and which products to promote more aggressively.

As a result of having done it for so long, we have developed a high level of competency in managing multiple states. It was a great way for us to continue to grow.

Credit union leadership holds monthly all-hands calls for employees in all locations, along with quarterly meetings for managers. In addition, the credit union frequently surveys employees and encourages them to submit ideas through an intranet portal.

“The biggest best practice is to empower regional leaders,” O’Rourke says. “Strong regional leadership and local decision-making are what allow us to thrive and enable our culture to shine through without constant oversight.”

That means hiring the right people and retaining local leadership.

O’Rourke says United thinks about growth in a variety of ways, starting with ensuring it is serving existing markets to the credit union’s full potential. Next, it looks at adjacent market growth where it can leverage brand awareness and local management.

“For example, we have a big presence in Reno and Carson, Nevada, so putting a branch in a new community 30 minutes away made sense for us,” he says.

Lastly, United considers brand-new markets but generally only enters those via mergers or acquisitions. After conducting due diligence on new markets, management considers factors such as size, population growth, local economic vibrancy, and competition.

“It’s far too expensive to enter a market where you have no presence and just start building branches,” O’Rourke says. “We prefer markets that aren’t major metro areas and have populations between 500,000 and 1 million people, where we’re able to make more of an impact.”

With that in mind, United’s M&A due diligence includes rigorous assessment of each institution’s culture.

“We want to retain the employees from the bank or credit union,” O’Rourke says. “Entering a new market becomes exponentially easier if you maintain the people.”

Callahan Client Webinar: A Blueprint For Entering New Markets

Moving into a new market is daunting and expensive, but the payoff could take your credit union to the next level. Join Jennifer Bolivar, senior vice president of business transformation for Suncoast Credit Union, on Aug. 27 as she shares best practices and lessons learned from the cooperative’s recent new market expansion.

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The post 2 Approaches To Multi-State Expansion appeared first on CreditUnions.com.

Top-Level Takeaways

• Business lending can be an important component of a balanced loan portfolio.
• Such lending, however, requires specialized talent to serve deserving, underserved borrowers.
• For some credit unions, SBA lending serves as a jumping-off point for working with small businesses.

Credit unions across the country are committed to helping business owners thrive. Such a stance helps cooperatives improve their capabilities for and deepen their relationships with enterprises both small and large.

In Utah, America First Federal Credit Union ($19.3B, Riverdale, UT) counts approximately 80,000 businesses among its total membership of almost 1.4 million. Its business loan portfolio of $1.4 billion currently includes 296 SBA loans with a total balance of nearly $250 million, of which roughly 75% is guaranteed.

“The guarantee allows us to work with borrowers who have a good business but lack the strength that having their own capital provides,” says Blake Weathers, senior vice president of commercial lending at America First. “It makes it possible for small businesses or less established businesses to grow.”

Across the country, Arlington Community Federal Credit Union ($468.3M, Falls Church, VA), has been offering business loans since it gained a community charter in 2009. Its SBA engagement reached a peak during the pandemic, when it funded 283 loans through the Paycheck Protection Program. It currently has approximately 950 business members.

“This effort allowed us to support numerous businesses that were unable to get assistance from their banks,” says Kevin Sheffield, the Virginia cooperative’s business lending manager.

Sheffield has been with Arlington Community for seven years and transferred from another business unit to help the credit union handle the PPP crush. Since then, he’s gained an appreciation of the differences between SBA and conventional lending. SBA loans, for example, require detailed business plans, financial statements, and other documentation around eligibility and ability to repay. In exchange, the lender gets a government guarantee and the borrower often gets lower down payments and longer repayment periods.

Meeting Guidelines, Acquiring Talent

The SBA loan process can be complex. Documentation, requirements, and review can be quite extensive compared to conventional loans, Sheffield say, and it’s up to lenders to understand the intricacies.

“We have a team of experienced professionals who specialize in SBA lending and have established partnerships with key players in the SBA lending community,” Sheffield says. “This allows us to quickly identify loans that will or will not qualify, streamlining the process for our members.”

America First, meanwhile, has been involved with small business lending since Weathers joined the credit union in the mid-1980s. As the head of business lending — the credit union split lending from business services approximately three years ago — Weather leads a team that is scattered across the credit union’s home state of Utah as well as the other five states in which America First has a field of membership. According to Weather, SBA lending requires specialized talent to keep up with the “ever-changing” government program. That type of talent is difficult to cultivate internally.

“Trying to have someone learn SBA lending in-house has never worked for anyone as far as I know,” Weathers says. “We had to acquire and pay for people that work in that specific industry.”

Do’s And Don’ts For B2B Success

Indeed, working in business lending and services is a specialty that deserves its own level of attention, from developing and sustaining the appropriate range of products and services to ensuring the right people are in place to build and sustain relationships with those members.

According to Weathers, that starts with having a strategy.

“Hire and pay talent to develop and execute a plan of action,” the lending SVP says. “Along the way, check your markers of success and adjust as needed. Treat it like a business on its own instead of having an employee add it to their already busy job.”

Sheffield at Arlington Community offers further insight into business lending.

Do:

• Collaborate with consultants or partners to establish robust policies, procedures, LOS, underwriting, and other essential frameworks.
• Develop a clear strategy and niche to guide the credit union’s operations and services.
• Listen attentively to members to understand their needs and challenges, then offer personalized solutions and services that cater to small businesses’ specific requirements.

Don’t:

• Neglect the importance of building strong relationships with members.
• Offer one-size-fits-all solutions that might not meet the needs of small businesses.
• Ignore the impact of industry trends and regulations on the credit union’s offerings and operations.

Serving Businesses Serves The Community

Serving businesses serves the entire community, and the reach can be broad. America First’s business members include accommodation and food services companies, health care and social assistance providers, construction, manufacturing, retail, transportation, and warehousing, “just to name a few,” Weathers says.

“We do small loans for Visas and lines of credit in the hundreds of dollars up to commercial loans in the multi-millions,” the veteran Utah lender says. “Each business is different and run differently and each has their own needs and wants. Relationships need to be built over time and the business owner needs you to understand their business. The better we as lenders do, the better we can help them.”

Arlington Community’s business members are a similar mix of enterprises. Sheffield says its largest is a real estate holding company with a loan of more than $1 million and the smallest is a nonprofit with a $20,000 loan.

“It’s worth noting that our niche is small business lending, an area often overlooked by larger commercial banks that primarily focus on larger loans,” Sheffield says. “Although we do have larger loans in our portfolio, we strive to serve and support the typically underserved small business sector.”

Affordable financial solutions and personalized service helps those small businesses succeed — and that contributes to the community’s economic vitality, Sheffield says.

“This commitment reflects ACFCU’s core values of community service and member empowerment, driving positive change for all members,” he says.

Is It Time To Evaluate Your Lending Strategies?

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The post The Power Of Business Lending And Services appeared first on CreditUnions.com.

BYU’s women’s team received a 6th seed in the March Madness tournament but was eliminated by Villanova in a close game on March 19. The men’s team was on the bubble but didn’t make the cut. Nothing about the results, however, disappointed Sharon Cook, senior vice president and chief marketing officer at Mountain America.

“It’s a lot of fun to work with these athletes because they’re so energetic and full of passion for what they’re doing,” Cook says. “It’s great to join with them, watch them grow, and celebrate their successes with them.”

In June 2021, the National College Athletics Association (NCAA) adopted an interim rule that allows players and their agents to enter into NIL deals with outside sponsors, opening the door for college athletes, like professional players, to earn money from endorsements. A few big brands such as Gatorade, Dr. Pepper, Mercedes Benz, and World Wrestling Entertainment (WWE) have entered the arena. So have a few credit unions.

Sports analysts say NIL contracts hit $100 million in 2021 and are expected to reach $1 billion annually in five years. That’s a lot of money exchanging hands, but many of the initial sponsors have had to feel their way through the new landscape.

The NCAA prohibits “pay for play” deals with universities; however, it left regulation of sponsorships up to the states. So far, 28 states have adopted regulations to govern sponsorships of athletes enrolled within their state. In the remaining states, NIL deals are allowed by the NCAA as long as colleges establish guidelines.

Here, marketing teams at three of the credit unions that were among the first to enter the NIL market offer insight on making deals with college players.

1. NIL deals are not as expensive as you think.

Sponsorships with large universities can cost big bucks. In 2018, Public Service Credit Union signed a 15-year, $37.7 million deal for naming rights to the new Colorado State stadium. Last year, Gesa Credit Union secured the naming rights to Washington State’s football field in a 10-year, $11 million deal.

Although a few NCAA players have signed multimillion-dollar NIL deals, most sponsorships are $500 to $1,500. Typically, these deals cost less because sponsors don’t have to license the university logo.

For example, Michigan State University Federal Credit Union ($6.7B, East Lansing, MI) sponsored all eligible players on its namesake Michigan State University women’s basketball team for the 2021-2022 season and track athlete Nala Barlow for the 2022 season. Each athlete receives $500 per month in compensation for in-person appearances at events, marketing, promotions, and social media posts. MSUFCU may also feature student-athletes in print ads, billboards, videos, television commercials, and on other platforms.

“Our contracts with all 12 women student-athletes are similar in value to one TV/radio campaign,” says Deidre Davis, chief marketing officer at MSUFCU.” But the value with this campaign is that it will run for several months and is more targeted to our target audiences.”

The structure of sponsorships can differ. Some offer a flat rate with monthly payments for an ongoing contract or a one-time payment for a one-off deal. Others are structured on a dollar amount per follower for a player’s social media account, up to a cap. And others are a combination of methods.

“They’re all over the place,” MACU’s Cook says. “It’s difficult because it’s so new. There’s no given guideline. It’s really just a matter of looking at it and saying, ‘Is this OK for the value we think we can bring to our members, and does that match what the player might want?'”

Cook says Mountain America considered several deals, some brought to the credit union by the players, and decided on three sponsorships in 2022: BYU’s Barcello and Gonzales, and Dixie State women’s soccer midfielder Savannah Stauffer, a nativeof Springville, UT.

Cook also says to be prepared to negotiate with sports agents as well as players’ parents. One of the key qualities the credit union looks for in the athletes it sponsors is that the students give back to the community and “operate in a specific way.”

“We’ve had some success with some players, and we’ve let of a couple of deals go,” she says. “You know when it clicks and it’s going to work for both of you. Then it’s like any other sporting sponsorship. You negotiate back and forth and see how it fits.”

BYU guard Shaylee Gonzales discusses her NIL contract and the business side of being an athlete on a Mountain America podcast.

BYU men’s basketball guard Alex Barcello appears on a Mountain America Credit Union podcast.

UCF track and field hurdler and U.S. Olympic Team Trials qualifier Rayniah Jones is appearing in ads, a financial education podcast, and an Addition Financial-produced hype video.

“MSUFCU and their leaders are pioneers in recognizing women’s athletics,” says Moira Joiner, one of 12 MSU basketball players with NIL sponsorships.”We are glad to be a part of their vision for our collective future.”

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“MSUFCU and their leaders are pioneers in recognizing women’s athletics,” says Moira Joiner, one of 12 MSU basketball players with NIL sponsorships.”We are glad to be a part of their vision for our collective future.”

2. Vet, vet, vet the players … and vet some more.

Like any type of sponsorship tied to an individual, there’s a little risk and a lot of luck involved in the outcome. Who’s to know if a highly ranked high school standout won’t be a bench warmer in college? A single injury, or a poor decision off the field or court, can wipe out a promising player’s career. On the other hand, a relatively unknown player can rise to the ranks of MVP or Heisman Trophy winner, with a long career ahead in the pros.

During the 2021 football season, Addition Financial ($2.6B, Lake Mary, FL) partnered with University of Central Florida quarterback and hometown hero Dillon Gabriel for social media and in-person appearances promoting the credit union’s Aspire college checking accounts and UCF Knights affinity debit cards. Outside of UCF football, Gabriel launched his own company, DGTheBrand, and was able to speak to the importance of financial literacy not only as a student but also as a business owner in his Addition Financial appearances.

However, a long-term relationship wasn’t meant to be. Gabriel broke his left clavicle in September during the final play of a game against Louisville, ending his season early. He announced plans to transfer to the University of Oklahoma in December. A month later, Addition Financial launched a second NIL partnership with Rayniah Jones, a hurdler for the UCF track and field team who qualified for the U.S. Olympic Team Trials in 2021

The deal with Jones includes social media posts, in-person appearances, digital and outdoor advertising, television commercials, and podcast interviews.

“NIL programs are an incredible way to drive brand awareness and align your organization with a spokesperson that your audience trusts and roots for,” says Katie Thomason, vice president of community engagement and partnerships at Addition Financial. “When setting up an NIL program for your credit union, make sure you do your research. What other brands has your prospective athlete partnered with? How does this athlete represent himself or herself on social media? What is this athlete’s reputation offline?”

Thomason advises that online sports marketplaces can help credit unions research athletes in their market and understand what they might be seeking in an NIL partnership.

“Get to know the athletes you’ll be working with,” Thomason adds. “Each athlete has a different personality and range of interests. By focusing on building those relationships, you can create a more authentic brand partnership and help them play to their strengths when creating content.”

3. It’s all about social media influence.

NIL contracts might be new, but social media marketing is not. One of the key metrics sponsors are looking for is the number of followers athletes bring to the relationship over Instagram, Facebook, Twitter, TikTok, and more. Credit unions can then base contracts on influencer marketing industry standards. But it’s not just about social media numbers, it’s about engagement with those followers, Thomason says.

Quarterback Dillon Gabriel has 32,000 followers on Instagram. In addition to posting about his work with Addition Financial, Gabriel’s stories included the “swipe up” feature to link directly to his landing page on the Addition Financial website.

And now that Instagram incorporates a link button on stories for all users, not just those with 10,000 or more followers, that opens up opportunities for track star Rayniah Jones, who has 7,000 Instagram followers. According to Thomason, those followers are actively engaged with her content.

“Our first social media post to announce the partnership with Rayniah received more than 21,000 impressions on Instagram, and comments have been overwhelmingly positive,” Thomason says.” As a credit union based in Central Florida, we understand firsthand how much the UCF brand resonates in our community. These partnerships allow us to engage with UCF fans we might not normally reach and have given us the opportunity to increase our impact among college students.”

SOCIAL REACH OF MSUFCU’S STUDENT-ATHELETES

DATA FROM MSUFCU

Callahan & Associates | www.creditunions.com

MSUFCU’s student-athletes have a combined reach of more 44,000 followers.

With 10 of the 12 MSU women’s basketball team members and track star Nala Barlow posting regularly on social media, their combined influence reaches more than 44,000 followers. Although MSUFCU doesn’t have analytics from the players’ accounts, it’s definitely seeing an uptick in traffic from player posts.

“We’ve noticed a lot of notifications on our social feeds from the players,” says Davis from MSUFCU. “It’s obvious we are receiving more interaction on our social profiles as a result of the athletes’ posts.”

Engagement with posts on MSUFCU’s social properties is also strong. MSUFCU announcements on the NIL contracts reached more than 16,000 followers, resulting in 700 reactions, likes, and clicks across the credit union’s Facebook and Instagram accounts. More than 1,000 of those Instagram impressions were non-follower accounts.

MSUFCU also sponsored several women’s basketball ticket giveaways on Facebook and Instagram throughout the season.

“Each Facebook post reached approximately 2,800 people on average,” Davis says. “Each Instagram post reached approximately 1,000 people and helped us gain 10 to 20 new followers each time. Instagram is where we have seen the highest increase in engagement. We are tagged much more often on Instagram now that the NIL athletes are posting on our behalf, which is helpful for our algorithm and reach in general.”

4. Align NIL sponsorships with the credit union’s mission.

Student-athletes’ stories offer a natural segue to the credit union mission of financial wellness and education. Even more poignant is that many of these athletes are starting to enter of the business world, and some lucky few are planning ahead for a professional sports future.

“As a proud partner of the UCF Knights, these sponsorship deals allow us to showcase this partnership while demonstrating our commitment to students and financial education,” Addition’s Thomason says. “These student-athletes are able to provide more relatable content to capture the attention of a younger demographic.”

UCF track star Rayniah Jones says it was an important reason for choosing Addition Financial.

“I think it’s important for college students to start learning about managing their finances responsibly,” Jones says. “Through this partnership, I’m most excited to shed light on financial literacy for other students and help them learn these habits from a young age.”

Both Addition Financial and Mountain America recorded podcasts with their athletes to highlight these messages as part of their ongoing financial education programs.

“You need to think outside the box to determine if there are other places to promote these partnerships and incorporate those into your contract,”Thomason advises.

Mountain America’s Cook also notes that the NIL relationships are a great opportunity to help the athletes themselves learn about managing their finances.

“We have had an opportunity to share different aspects of our business that they’re interested in such as business services, mortgages, and real estate,”Cook says.”We can put them in touch with folks to teach and guide them and introduce them to people that might be helpful in furthering their education.”

5. Make plans well in advance.

College athletes aren’t like typical spokespeople. They have busy class schedules, practice schedules, media appearances, and game days, with little extra time for sponsorship activities. Sponsors would love to schedule appearances at local branches during the season such as during the March Madness tournament but these are the worst possible times for the athletes.

“It puts a lot of strain on many of the athletes, especially during their actual season,” Cook says. “You have to be open and flexible and work around their schedule. You can’t pull them out of their world at those critical times. So, like anything you do in marketing, you come up with a plan and work ahead. Maybe get some interviews done beforehand and air them during the actual game time.”

A big part of sports marketing is reacting quickly to unexpected opportunities. Two of MSUFCU’s most successful social posts were about MSU coach Suzy Merchant hitting a milestone number of wins, which reached 3,500 people, and athlete Nia Clouden being named Big Ten Player of the Week, which reached 2,500 people.

The credit union has been a sponsor of MSU athletics for more than 12 years and became the presenting partner of MSU women’s basketball in 2019 as part of a multiyear athletics sponsorship agreement. NIL contracts were the natural next steps, Davis says.

“The NIL landscape is a brand-new frontier that is ever-changing, but it does demonstrate that the value of influencer marketing is alive and well,” Davis says. “We are continuously learning as new student-athlete partnerships are launched. And as these programs evolve, we hope to continue to collaborate with athletes in meaningful and innovative ways.”

The post 5 Tips For Navigating NCAA Player Sponsorships appeared first on CreditUnions.com.

• Despite challenges, credit unions found ways to adapt and meet the needs of their current members and local small business owners.

• From funding more loans than any other lender in its state to approving 100% of applications, each of these vastly different-sized institutions had an outsized impact on their local communities.

• All five have seen additional commercial accounts move to the credit union as small businesses recognize and benefit from the relationship-driven cooperative difference.

After analyzing Treasury Department data on the number of jobs saved by credit union lending and publishingan overview of the top cooperative lenders by state and nationally for the Paycheck Protection Program (PPP), we spoke at length with five credit unions of various sizes and geographic regions to learn how the program has helped their institutions strengthen business relationships moving forward.

A History of Serving Small Businesses

One thing all five credit unions have in common is a history of offering business services, specifically loans and deposit accounts.

CU QUICK FACTS

Mountain America Credit Union
Data as of 06.30.20

HQ: Sandy, UT
ASSETS: $11.0B
MEMBERS: 915,673
BRANCHES:97
12-MO SHARE GROWTH: 23.7%
12-MO LOAN GROWTH: 20.3%
ROA: 1.31%

Mountain America Credit Union($11.0B, Sandy, UT) has offered business loans for over 25 years and business deposit accounts since 2002. With roughly 60,000 business members and over 9,000 commercial loans, one of the largest credit union PPP lender notes that they have seen many repeat borrowers over the years.

VyStar Credit Union($9.5B, Jacksonville, FL) has been serving small business for about 10 years, though its specific focus on business lending has calcified in the past five years. Through its concerted efforts, the cooperative’s business loan portfolio has grown from $200 million in 2018 to nearly $800 million today.

Idaho Central Credit Union ($6.0B, Chubbuck, ID) has been offering business loans and services since 2008. Their current portfolio consists of over $800 millionin member business deposits and over $700 million in business loan exposure. The cooperative has more than 20,000 business accounts with a good percentage of those members using Idaho Central as their primary financial institution.

BHCU ($194.2M, Ridley Park, PA) has been offering business services for nearly five years. Their Delaware County field of membership is full of traditional small businessesand the credit union serves approximately 500 of them. Its business members include mom and pop shops, plumbers, electricians, and contractors, businesses that are most likely to be underserved or underbanked by larger financial institutions. Thecooperative provides these members with more than just a loan, as delivering real value for businesses is part of its brand promise.

Platinum Federal Credit Union ($179.2M, Duluth, GA) is a relatively young credit union established twenty years ago to serve the small business community. A highpercentage of their approximately 1,200 business accounts are used as primary checking accounts by retail businesses with heavy cash needs, including local small businesses that sell money orders. This has led the cooperative to partner with armoredservices, offering same day credits and cash pick-ups. Platinum believes these are much-needed services that many banks have eschewed in recent years, providing an opportunity for credit unions.

Addressing Immediate Needs, Overcoming PPP Challenges

It taxed all of us and took courage to be the first to launch, says Mike Turner, CLO for Mountain America. Even without complete information from the Small Business Administration (SBA), the cooperative began using its own application. Inaddition, its leaders reached out internally for reinforcements to handle the volume. Training was quickly rolled out and all areas of the credit union lent support. We rallied the troops and just did it, Turner says. Those troops workedaround the clock for several weeks; knowing that the intense pace would not last forever, MACU also tried to support staff by bringing food in and ensuring breaks were taken along the way.

It was a lot of blood, sweat and tears, says Jenny Vipperman, CLO for VyStar Credit Union. Despite its status as an approved SBA lender, the credit union had never originated an SBA loan prior to PPP’s beginnings. Instead, the cooperative relied on a vendor partner to handle SBA originations and planned to do the same with PPP as all their internal business lending resources were supporting a partnership with the city of Jacksonville. A single day into PPP, however, that partner couldn’t handle the volume and had to shut down. Our chief experience officer, chief information officer, and I got together and decided that we were going to originate these ourselves, says Vipperman. That meant leaders spent nights and weekendsworking with programmers to create a new application process utilizing bots a team of 20 held calls several times a day to make it work. But once the newly developed app was up and running, there was another curveball for the credit union to address: the SBA had shut down the use of bots.

We had a great staff of commercial underwriters, processors, and loan officers that were able to learn the program and get it off the ground fast. As we began to see a flood of applications, we mobilized employees from throughout the organization to assist the commercial team in processing them.

At that point, we had 75 people take on the manual work, says Vipperman. Again, that required working nights to manually enter applications in the SBA’s system, which was crashing during the day. My CEO, myself, so many of uswere doing this because we had to serve our members, she says. This was especially important as some members who applied early on through the credit union’s vendor had to reapply. It wasn’t until current business members and VyStar’s 750,000 retail members were squared away, that the cooperative opened PPP applications to the entire community. We encouraged everyone to apply, whether they had one employee or 500, notes Vipperman. A small-business friendly process whereby applicants picked up a pack through the drive-thru in the afternoon, returned it the following morning, and received funding that same night resulted in 4,500 approvals by mid-June.

For Idaho Central Credit Union, its executive management’s ability to devote time and resources to PPP, along with help from an in-house team, made all the difference. We had a great staff of commercial underwriters, processors, and loan officers that were able to learn the program and get it off the ground fast. As we began to see a flood of applications, we mobilized employees from throughout the organization to assist the commercial team in processing them, says Jarom Campbell, vice president of commercial credit administration at the Gem State cooperative.

CU QUICK FACTS

VyStar Credit Union
Data as of 06.30.20

HQ: Jacksonville, FL
ASSETS: $9.5B
MEMBERS: 721,138
BRANCHES:77
12-MO SHARE GROWTH: 27.2%
12-MO LOAN GROWTH: 20.1%
ROA: 0.79%

To put the PPP volume in perspective, Idaho Central makes approximately 1,300 business loans per year. The cooperative,which made more PPP loans than any other lender in its state,

BHCU was also ready to move quickly with seasoned commercial lenders on staff. We were already in the process of becoming an SBA-approved lender and I’m a commercial guy by trade, says Gary Golden, the credit union’s CEO. His personal experience, along with the expertise of credit officer, Jerry Dorn, allowed the Pennsylvania cooperative to pivot without much difficulty. They also leveraged relationships with other financial service companies, including Member Business Financial Services (MBFS), to get the applications processed quickly.

Platinum FCU’s decision to become an SBA lender in 2020 a process they began in 2019 made for a seamless process and allowed them to quickly jump into the PPP. We were able to email members about PPP before the official launch date because we were already SBA members, says Kabir Laiwalla, Platinum’s CEO. The credit union’s consumer lending manager, chief lending officer, and the CEO himself were able to distribute the work and create a supply chain whereby one person took applications and the others reviewed them and communicated with business members. The Georgia cooperative also made use of third parties such as Leverage and MBFS to assist with the SBA side of the process, allowing Platinum to remain focused on their members. Laiwalla notes that becoming an SBA lender is much easier today than when he first considered it back in 2005. We applied at the beginning of 2020 and got our license and approval in 2-3 days, he says. I highly recommend other credit unions consider it.

Cementing Existing Relationships & Opening The Door To New Ones

CU QUICK FACTS

Idaho Central Credit Union
Data as of 06.30.20

HQ: Chubbuck, ID
ASSETS: $6.0B
MEMBERS: 405,589
BRANCHES:38
12-MO SHARE GROWTH: 33.6%
12-MO LOAN GROWTH: 21.9%
ROA: 1.43%

MACU saw the PPP loans as a clear way to live their mission of being there for members. The cooperative funded 7,000 loans with an average amount of $50,000 for both existing and new members alike. It was rewarding when we received countless emails and letters thanking us for being there when other financial institutions were not, says Turner. And because of that positive experience, many credit unions saw interest from those businesses, who wanted to know more about what their cooperative could offer.

It absolutely helped us bring new business into the fold, says VyStar’s Vipperman. The commercial team has since been reaching out to those who got first-time loans through PPP and already has dozens of businesses interested in refinancing other loans and moving their relationship to the credit union. Overall, 97% of the loans VyStar funded were under $150,000 with a few large loans going to local non-profits. A stark contrast to stories of large chains receiving millions in funding from big banks.

Idaho Central has also received an overwhelming response to their involvement. We have received stories from all over the state about how we were able to help save jobs, help save businesses, and help save Idaho, says Campbell. As one of the first financial institutions in the state to get up and running, word spread like wildfire across the business landscape and non-members began asking for help from the credit union when their banks weren’t up and running. As a result, Idaho Central helped more than 800 new business members secure a PPP loan. Those businesses are now in the process of moving over their entire relationship. We are hearing the same thing from our existing business members, that we stepped up and helped save their business, Campbell says.

We couldn’t have done this with just my lending team, we had representation from every single department who all stepped up and volunteered to help us.

BHCU’s PPP loans were split nearly 50/50 between new members and existing members. We solved a big problem for them, especially those who came to us after getting nowhere with their primary bank, says Golden. For the credit union,this was a huge source of new business and an opportunity to showcase the cooperative difference. After approving every single application, BHCU has found that they not only have new business members, but new retail members joining. When you’re there for someone in a crisis, they remember that, says Golden. He’s seen first-hand business members who are now also moving their personal accounts to BHCU and encouraging family and friends to do the same. While the effort was herculean and involved midnight and 2 a.m. emails responding to members, it was worth it according to the Pennsylvania cooperative. Now, businesses want to hear from BHCU and understand they are an organization built on service and relationships, not just transactions.

Of the more than 500 PPP loans Platinum FCU funded, about 150 were new business members. We had several members who only had personal accounts. We’ve already started working on new SBA loans from those new business member relationships, says Laiwalla. Since the credit union mainly serves smaller businesses, their average loan size was just $25,000 and the smallest loan they funded was $1,200. After processing the first and second waves of PPP, the credit union focused its efforts on educating members to ensure smaller businesses, who may not be used to taking loans at all, clearly understood what they could use the funds for and what they could not.

Lessons Learned, How to Serve Small Businesses In The Future

CU QUICK FACTS

Platinum FCU
Data as of 06.30.20

HQ: Duluth, GA
ASSETS: $179.2M
MEMBERS: 10,032
BRANCHES: 5
12-MO SHARE GROWTH: 52.0%
12-MO LOAN GROWTH: 24.7%
ROA: 1.50%

Despite ongoing economic uncertainty, MACU’s philosophy is still to serve all members, including small businesses. Unlike some institutions who decided to stop making certain types of loans, the Utah-based cooperative is making slight adjustmentsto loan-to-value ratios and looking more closely at potential loans to protect member assets and serve business needs responsibly. We look for ways to make loans, not pull the rug out from under small businesses, says Turner. The abilityto make local decisions and act nimbly are two advantages of working with MACU.

VyStar has always been a conservative lender and is continuing to do their part to protect both members and the institution particularly on the real estate side of its portfolio. We’re focusing on members’ existing loans andmaking sure we work with them on forbearances or modifications to keep them in a good place, says Vipperman. Overall, the PPP experience taught the chief lending officer that no one can go it alone when it comes to meeting immediate memberneeds. We couldn’t have done this with just my lending team, we had representation from every single department who all stepped up and volunteered to help us. The credit union’s philosophy of making what’s importantto the members important to the institution helped clear the way for this proactive assistance. None of this we could have accomplished if people didn’t work together. That’s how all of us are going to get through this, saysVipperman.

Upcoming Webinar: How To Serve Small Business – Insights From Successful PPP Lenders

Join us for a webinar on August 27 at 2:00 p.m. ET to learn how credit unions can help local business owners during their time of need while showcasing the credit union difference.

Register Today

For Idaho Central, having a competent business and treasury management team, along with over 10 years of business banking experience and cutting-edge IT resources have been key to success. Business members are worried. We need to be there for themas they navigate this new financial landscape we all find ourselves in, says Campbell. The top in-state PPP lender learned several valuable lessons centered around automation for loan applications, and tweaked their process almost daily withthe IT department as its internal teams searched for ways to do things quicker and more efficiently. This was a game changer for us and allowed us to help even more Idaho small businesses, he says.

BHCU hasn’t made any philosophical changes to their business lending model, but is asking more questions than years past to understand and evaluate new loans. You can’t simply look at 2018 and 2019 performance, especially in industrieslike food service. You need to understand what cash flow looks like today and what the expectations are now, says Golden.

The PPP process, while challenging, validated the ability of credit unions like BHCU to compete with the larger banks and differentiate with small businesses. The way many banks treated smaller businesses some even telling them to comeback in a month to apply for a non-PPP loan proved my point that we’re a good alternative, says Golden. The Pennsylvania cooperative didn’t tell anyone to wait or turn away a single small business for any type of loan request,as it’s simply not in their nature.

CU QUICK FACTS

BHCU
Data as of 06.30.20

HQ: Ridley Park, PA
ASSETS: $194.2M
MEMBERS: 8,298
BRANCHES: 2
12-MO SHARE GROWTH: 22.5%
12-MO LOAN GROWTH: 8.7%
ROA: 0.64%

Platinum FCU is continuing to serve business members, while at the same time beefing up their allowance for loan losses, adopting some of the new self-employed guidelines introduced recently for mortgages into their commercial products, and pausing its$100,000 unsecured line of credit. The SBA commission earned through PPP has helped the credit union increase its loan loss allowance and pay all staff a bonus to thank them for continuing to work through challenging times. While Laiwalla has beenan advocate for credit unions serving small businesses, he sees the national wave to go cashless as a potential disadvantage. If you want to serve retail businesses, you may want to rethink that strategy, he says.

Platinum FCU was formed to help support these types of cash-intensive businesses, but often receives requests from non-members and has difficulty finding other institutions to refer the business. There may be more scrutiny for Bank Secrecy Act(BSA) compliance, but we’re here for the members. We will continue to go above and beyond to serve their needs, Laiwalla says.

Laiwalla notes that many banks are getting out of these types of services and most credit unions were never in that space to begin with, leaving a big gap for retailers and a big opportunity for cooperatives.

There is still plenty of cash and there will continue to be as long as there are unbanked or underbanked consumers.

The post What We Can Learn From Successful PPP Lenders On How To Serve Small Businesses appeared first on CreditUnions.com.

See below for more insights into the leaders in credit union PPP lending.

The post National Leaders In PPP Lending appeared first on CreditUnions.com.

The department released data in two formats. For loans exceeding $150,000, the department identified the borrower by name and other information but provided only ranges for the loan amount for example, $350,000 to $1 million. For loans less than $150,000, the department did not identify borrowers by name but did provide the specific loan amount.

Preliminary analysis by Callahan & Associates shows credit unions in all 50 states, the District of Columbia, and five territories originated 11,424 loans exceeding $150,000, accounting for 1.73% of all loans in this bucket. Because the specific dollar amount is not included for larger loans, the total balance for loans in this category is likely between $3.24 billion and $7.91 billion.

Credit unions played a larger role in lending to companies that requested less than $150,000, originating 179,085 loans for a total of $4.67 billion. This represents 3.29% of the dollars lent in this category but 4.23% of the borrowers, indicating credit unions originated a lower average amount than their banking peers.

According to data provided in the borrower application, these credit union loans saved 1,144,035 jobs. More than 13% of borrowers did not include employee numbers in their applications, so this number is likely much higher.

Mountain America Federal Credit Union ($9.3B, Sandy, UT) originated more than 7,000 loans, more than any other credit union. Of these, more than 6,560 were less than $150,000. Greater Nevada Credit Union ($1.1B, Carson City, NV) originated the most loans of all credit unions in the larger loan category almost 700 loans more than $150,000.

Check back for more analysis as Callahan dives into the data.

The post Credit Unions Help Save More Than 1.1 Million Jobs Through PPP appeared first on CreditUnions.com.

• The WOW Auto Loan lets members borrow up to $30,000 to pay off loans or lease residuals and reserve for unexpected repairs.

• Opportunities also will help members negotiate other debt, and requires financial counseling in some instances.

• The program has generated more than $3.4 million in loans in two years and only $5,700 in write-offs.

CU QUICK FACTS

Opportunities Credit Union
Data as of 03.31.19

HQ: Winooski, VT
ASSETS: $40.3M
MEMBERS: 6,165
BRANCHES:2
12-MO SHARE GROWTH: 7.5%
12-MO LOAN GROWTH: 18.5%
ROA: 0.40%

Is America’s auto loan debt getting out of hand? The $73,200 base price of the 2019 Lincoln Navigator kind of says it all.

With prices at the dealership on the rise, America’s outstanding auto loan debt reached $1.14 trillion in Q3 2018, up 63% from 2010, with the average monthly payment for new cars hitting $531.

These pricing pressures are fueling longer loan terms (68.8 months on average for new cars), and a growing number of borrowers are going underwater on their loans or moving to leasing contracts they can ill afford. To provide relief from crushing debt, Opportunities Credit Union ($40.3M, Winooski, VT) began offering its WOW Auto Loan in mid-2017.

Under the program, Opportunities members can borrow up to $30,000 for a 2010 or newer vehicle, with only 70% of the loan secured by the value of the vehicle. Opportunities will pay off the member’s old loan or lease residual, settle collections or other high-cost debt, including credit cards, and place up to $1,000 in a reserve account for unexpected repairs.

Cheryl Fatnassi, CEO, Opportunities Credit Union

The product generated just under $2.2 million in loans in the second half of 2017, $1.2 million in 2018, and is on track to well surpass that amount in 2019. The delinquency rate is less than 1%, and the credit union has only had to write off $5,700 over the life of the program.

Members have responded very positively, people are extremely relieved when they come in, says Cheryl Fatnassi, CEO of Opportunities. Some people have described this as a life-changing product where we’re paying off their debt, their payments are lower, and they have a built-in savings account in escrow in their name. They know if they have some sort of emergency, they can access this account, typically for vehicle repairs, but also for some emergencies that might happen in the family.

Opportunities financial counselors work with members to analyze their income and expenses and come up with a plan to make payments on old debt of all kinds or roll it into a loan, including sometimes a WOW Auto Loan. Fatnassi says, with the credit union’s help, members can typically settle old debt for 50 cents on the dollar, or even lower on balances near the end of the loan.

Most of the companies that we work with know our counseling staff, they know we’re looking at people’s budgets and that we’re looking for what’s reasonable, she says. And we present that when we offer a settlement. There’s usually some back and forth, but they’re willing to work with us.

The impetus for the special loan program came from Opportunities’ analysis of consumer loan applications and counseling activities regarding debt and predatory lending rates. This research showed a growing pattern of high debt-to-income ratios, collections and charge-offs, and borrowers being underwater on vehicle loans (owing more than 100% of the vehicle’s current NADA Blue Book value).

A Growing Problem

It’s a common problem, Fatnassi says, driven by high interest rate loans, overpaying for the vehicle, add-ons to the purchase price, end payments on leased vehicles, and insurance losses with balances still owed.

As in many rural states like Vermont, public transportation is very limited and having a reliable vehicle is an absolute requirement in order to get to and maintain a good job, Fatnassi says. The goal of the WOW Loan is to get them out of all of that debt. If you’re just putting another vehicle on top of their debt, you may be lowering the rate on that one payment, but you’re not addressing the larger problem they’re facing.

Among the requirements for WOW Auto, in addition to 70% collateralization, members must:

• Pay bills and loan payments on time.
• Live at the same address and work at the same job for at least 12 months.
• Enroll in free financial counseling if they have a late payment history or outstanding collections.
• Maintain a checking account, enroll in direct payroll deposit, and make electronic payments to pay loans.

Members also are encouraged to use e-banking services, set up automated account alerts, and participate in financial education and counseling.

Cutting Interest Rates In Half

The WOW Auto program supports Opportunities’ mission as a community development financial institution (CDFI) in providing financial services to economically disadvantaged individuals within underserved communities. Founded in 1989 to serve that market, Opportunities maintains relationships with other credit unions and banks across the state to fill the gap in its underserved market.

The credit union offers interest rates for WOW Auto loans of between 5% and 9%, compared to the high-interest loans that can range from 12% to 20%.

We can usually cut their interest rate in half, Fatnassi says. It’s not like you’re financing a recreational vehicle or a boat. You’re financing something that they need.

Leasing: The New Predatory Scheme

In addition to underwater loans, the credit union is also helping members get out from under auto lease debt. Auto leases typically last 36 months, and borrowers don’t build up equity. An open-ended lease may allow borrowers to purchase the vehicle at the end of the term, but they also may owe thousands of dollars in fees.

Fatnassi calls these leases the latest predatory area in finance. Like payday and title loans, leasing contracts can force consumers into an endless cycle of taking out a new lease just to satisfy the old one. Plus, leasing contracts aren’t regulated like traditional loans.

People who may not think they can finance a new vehicle through a traditional loan are getting steered toward this leasing concept, which seems to have more flexible terms, but they’re getting into leases with more predatory terms, the Opportunities CEO says. They sell you on the fact that under the lease, they’re going to do all of the warranty and maintenance on the vehicle, and all you have to do it bring it in. However, there are a lot of terms and conditions on what’s covered and what’s not covered, plus mileage limits and certain large fees. They just wait until the end, and you have this huge bill.

Focusing On Financial Education

One of the fundamental problems borrowers face is that they lack confidence in financial matters, and when they’re confronted with high-pressure sales tactics, they make bad decisions, Fatnassi says. Recently, she heard the story of a borrower who took his car in for repairs and was quickly convinced by a sales person that repairing the vehicle wasn’t worth it.

The man said he tried to ask questions, but they made me feel like an idiot, she recalls. After he left, he looked at his paperwork and realized he had an 18% interest rate. We can help someone in that situation but we wish we could help them make better choices to begin with.

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