Community Projects Demonstrate Risk-Sharing CUSO Model 

With more than $1 billion in business loans already funded in Michigan, credit unions continue to demonstrate their commitment to Michigan businesses via ongoing collaboration in commercial lending throughout the state. Two new community-based projects are a great example of how credit unions in Michigan continue to reduce the financing gap caused by reduced lending by banks and non-bank lenders.

Construction on the Dexter Wellness Center in Dexter and on a multi-unit residential and retail property in downtown Auburn Hills are well under way. In both cases, a strong commitment from the lead membership credit union was complimented by support of additional credit union participants. In total, the two loans have 18 combined participants, with commercial lending CUSO Michigan Business Connection providing the construction administration and loan management for the credit union participants.

MBC President/CEO Bill Beardsley said the collaboration is typical of the loans it administers.

“Risk sharing is critical to safety and soundness, and these two projects illustrate the important role that credit unions are playing with economic development, affordable housing and quality healthcare,” Beardsley said. “I don’t think I’ve ever seen other financial institutions able to sincerely put their competitive differences aside in order to collaborate for the greater good like credit unions can. CUSOs help make that happen by providing expertise, but more importantly, a framework for the efficient exchange of risk and reward.”

Contact Beardsley at (734) 662-0614, ext. 250, to learn more.
 


Submissions to Monitor may be emailed. Bryan Laviolette is the editor of Monitor. Contact him by email or call (800) 262-6285, ext. 233. The newsletter of the Michigan Credit Union League is published Monday mornings or Tuesday mornings when Monday is a holiday. There is no Monitor the week after Christmas and the week after the Annual Convention and Exposition. The MCUL reserves the right to edit submissions for clarity and space.
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