Recent coverage in the Kansas City Business Journal and St. Louis Business Journal highlights the efforts of credit unions – including member business lending (MBL) and 2012 profit and membership growth.
Kansas City Member Business Lending Highlighted
The Kansas City Business Journal article, “Caught in the Middle,” focuses on the efforts of credit unions to provide business loans and lift the 12.25% cap currently in place to 27.5% of assets.
Alpha Energy and Electric, Inc. and The Clay Group, two businesses helped by Mazuma Credit Union when banks would not provide the loans they needed, explain the need for more options.
“Our inability to get financing from local commercial banks wasn’t from lack of trying,” Gabriel Okafor, president of Alpha Energy and Electric Inc., stated in the April 12 article. “They kept saying we didn’t have enough history as a company to lend to us. But Mazuma stepped up and was willing to bet on us.”
Alpha Energy won the Supplier of the Year Award from the Mid-America Minority Supplier Development Council in March and was named as the Small Business Administration’s 2012 Minority Business of the Year for the Kansas City district.
“I’m sure if we went back to those commercial banks now, they might lend to us, but Mazuma helped us when we needed some help, and we feel a need to stick with them and try to help them in return,” said Okafor.
St. Louis Credit Unions See Growth in 2012
The St. Louis Business Journal article focused on the 2012 growth of the 25 largest credit unions in the St. Louis region. Overall, these credit unions had a reported combined profit of $47 million, which is an increase of 18 percent from 2011. Loans rose six percent and credit union membership grew more than four percent for a total of 920,000 members.
In the April 19 article, Anheuser-Busch Employees’ Credit Union President/CEO Dave Osborn highlighted how the credit union returned $1.2 million to its members in 2012. First Community Credit Union cited fewer delinquent loans and increased loan refinancing as beneficial to the bottom line.
Graphic: Brad Harbold, Kansas City Business Journal