bringing product & service solutions to cdfi credit unions for business lending
DESCRIPTION
Bringing Product & Service Solutions to CDFI Credit Unions for Business Lending . New York State CDFI Coalition Conference – Credit Union Lunch September 30, 2013. The Problem: Main Street Business Owners* Don’t Get What they Need to Succeed. - PowerPoint PPT PresentationTRANSCRIPT
Bringing Product & Service Solutions to CDFI Credit Unions for Business Lending
New York State CDFI Coalition Conference – Credit Union Lunch
September 30, 2013
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The Problem: Main Street Business Owners* Don’t Get What they Need to Succeed
8,000 small and micro business owner credit applications declined each business day**
*Solo, micro and small business owners**Treasury Secretary Jacob Lew, 10 June 2013
• Banks: Small loans too costly to underwrite profitably• Alternative lenders: Fast and efficient but very
expensive• Community lenders: Hard for business owners to find,
limited service lines and capacity constrained• Business owners: Frustrated• Community and economy: Missed opportunities
?
Alternative lenders
Nonprofit community lenders
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The Solution: A New Technology-Enabled Infrastructure for Main Street
Product, Service & Content Partners
Capital Partners
Marketing Partners Distribution Partners
REPRESENTATIVE, NOT EXHAUSTIVE
Need to define compliant solution for CDFI credit unions
Our Vision: Every Business Owner Gets Insight & Access Through CDFIs
• Understanding of business performance, and path to “right fit” capital
• Access to capital and/or services as quickly as one day
• Access to real people on the phone or in person
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TILT Forward Short-Term Working Capital Loan Complements and Extends a CDFI’s Product Portfolio
$150K $500
$50K
• Secured• 1 year term
• Up to $50,000• Secured• Interest rates from 7.75% -
12%• Up to 72 months term
“Credit Builder” loans
“Micro-Loans”
• Short-term working capital loans $5,000 - $150,000
• Unsecured• Interest rate up to 16.5% + origination fee• Automated daily repayments• 6 to 18 months term
$5K
Value proposition for Credit Unions?: 1. Better serve current clients2. No up-front investment (e.g.
per loan fee)3. Easy to integrate into current
operations
AEO and the Federation are Collaborating to Create a Compliant Solution for Credit Unions
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Initiatives• Micro Capital Task Force• Industry Strategic Plan• Building Capacity in the Southeast• Strengthening Statewide Networks• Re-Imagining Technical Assistance
Core Functions• Communications• Policy & Advocacy• Knowledge Sharing & Community
• Product, Service and Capital Solutions for CDFIs
• National Campaign• Multi-Stakeholder Alliance
Credit union working group in formation. Contact Melanie Stern or Tammy Halevy
