League Senior Vice President David Miles and representatives from BayPort Credit Union accompanied business owners with MBLs from BayPort to speak with Sen. Webb’s aide, Charles Stanton, in Virginia Beach.
David reports: “In a meeting this morning with Senator Jim Webb’s regional representative, three small business owners in the Tidewater area detailed how they have created more than 70 new jobs as a result of loans obtained from their local credit union. Each unique story gave insight into the difficult credit market faced by small business owners in the last few years and how credit unions have been stepping up to provide much-needed capital.
The first local business owner went to a local bank more than three years ago trying to refinance an existing business loan to obtain a lower payment and interest rate as rates declined.
After being turned down by the bank, she approached Bayport Credit Union with a business plan to refinance, obtain a lower rate and payment, and use additional capital alongside the improved cash flow to expand her business. She has expanded her day care business from one center to three and now employees 48 in her place of business. Previously, she only was providing employment to three individuals.
The second business professional explained to representatives in Sen. Webb’s office, that she, too, had sought bank financing and business consulting advice from local banks without success. She explained how she, too, was operating a day care center in property she was leasing.
Unfortunately, the owner of the property was in foreclosure. With an excellent cash position, she wanted to expand her business by buying the building. Bayport provided the necessary advice and added capital to facilitate the purchase. She now employees 17 people and is planning a second center. Prior to the credit union loan, she was the business’s sole employee.
The third entrepreneur sought bank financing for a start-up business. After extensive research and the formulation of a sound business plan, she was unable to persuade local banks to accept her application.
Bayport, again, understood her needs and provided the necessary loan for her to open her first hair salon. Now, at just 23 years of age, she owns a successful business that employees eight additional stylists.
The net result – 71 new jobs in the Tidewater area as a result of just these three small business loans provided by a credit union.
Each business owner fully endorsed and supported SB 2231, which allows credit unions to make more business loans thereby creating jobs and giving small operations added sources of funding and capital. Bayport officials reported that they are at 65% of the business lending cap imposed under current law.
They will be at risk of having to curtail their successful commercial lending program without Congressional action to raise the limit. It is estimated that 5,000 new jobs can be created in Virginia if credit unions are permitted to lend $500 million in year one of raising the cap. Our communities and our businesses need this legislation.”
Take action now and contact Sens. Webb and Warner about SB 2231!