Michigan Credit Unions Ready to Assist Minority-Owned Businesses Access PPP Loans
Credit unions available to minority-owned business owners frustrated with PPP loan rollout.
According to data released from the Small Business Administration (SBA) regarding its Paycheck Protection Program (PPP) loans, minority-owned businesses were not prioritized during the prior rollout of the program. Additionally, many of these business owners have reported frustration with loan process times, application neglect and rejection from banks.
SBA’s PPP data found that applications for white-owned businesses were approved at nearly twice the rate of approvals for those owned by minorities.
In Michigan, credit unions have been stepping up to help small businesses during the COVID-19 pandemic, including assisting many small business owners in the PPP application process. The Michigan credit union movement recognizes the importance of these loans for providing small business owners, independent contractors and others with the financial resources necessary to cover critical business expenses.
The Michigan Credit Union League (MCUL) estimates that the state’s credit unions helped more than 10,400 small businesses access over $600 million from the SBA’s program. On average, these businesses had just five employees, and the median loan size was $20,400. In addition, more than 10% of these very small businesses became new members after being unable to borrow from their existing bank.
“In this challenging economy, there are small, minority-owned businesses that have not yet been able to take advantage of the PPP program. These are usually smaller businesses, without strong banking relationships, and many are in a very vulnerable position,” said MCUL CEO Dave Adams. “When the pandemic first hit, Michigan credit unions moved quickly to become SBA-approved lenders and have since been standing ready to continue helping small businesses through the process of getting these much-needed PPP loans.”
MCUL’s 2021 consumer awareness campaign, Banking Built for People, is designed to further spread the message that Michigan credit unions are there to provide solutions for members. The core message of the campaign, which recently launched, is simple: credit unions care more about their members, and what makes us different, makes us better.
Helping small business owners, especially those that have been turned away by banks, to access necessary PPP loans is just one of the services that make Michigan credit unions different.
Currently, the SBA PPP application period ends March 31, 2021. It is unclear whether this deadline will be extended, but Michigan’s credit unions are ready to meet the needs of minority-owned businesses and small businesses who are unable to get help from their existing lender.
For more information and to find an SBA approved credit union visit CULinkMichigan.com/smallbiz.Go to main navigation