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Credit unions providing alternative credit sources

Mar 14, 2011 Brian Bradley

For small business owners throughout the country, obtaining credit can still be a tenuous activity. To help fill the void left by the traditional banks, more and more credit unions are beginning to issue credit to entrepreneurs, according to MarketWatch. By doing so, credit unions are helping many small business owners survive in a difficult market. The push is reaching the state level. According to the source, Colorado Senator Mark Udall will likely present a new measure that will increase lending capacity for credit unions up to 25 percent of business assets. Under current law, which went into effect in 1998, such lending is capped at 12.25 percent "It's one of the few easy ways that we have to support credit unions, small businesses and help create jobs all at once," Udall stated in an email, according to MarketWatch. Udall's bill will have the backing of the largest credit union agency in the country. The news source reports that the Credit Union National Association believes that a new law could add 125,000 small business jobs because of more obtainable financing.