The U.S. Small Business Administration (SBA) has approved Land of Lincoln Credit Union as a SBA-certified lender, the credit union announced Monday.
This status will allow LLCU to offer a new line of business loans with lower down payments and longer repayment terms than conventional loans. LLCU pursued the certification in response to members asking for products that would help with cash flow, working capital and business expansion.
“The SBA allows the Credit Union to decrease its loss risk while simultaneously assisting a member that may have experienced a road block or two while trying to obtain their financing,” Andrew Young, LLCU’s chief lending officer, said in an email.
Currently, member business lending makes up less than 15 percent of LLCU’s loan portfolio. The credit union hopes to increase that share with the certification.
“To assist with the growth of the member business loans, we felt this was a great way to offer our members a lending product that can be more flexible than traditional means,” said Young in an email. “This will allow us to help a greater number of prospective members than we would have been able to in the past.”