Archive: Business & Technology

Alternatives Federal Credit Union is benefiting from the recent announcement by Governor Paterson and the Empire State Development Corp. (ESDC) that $50 million in loans will be available to small businesses across the state over the next two years.

Alternatives will receive $1,000,000 in allocations from the state’s new Small Business Revolving Loan Fund, which is geared to community development financial institutions and other community-based lending organizations statewide. The fund is targeted to “Main Street”-type everyday businesses.

Alternatives has long been a champion of the local, small business, being a provider of SBA microlending as well as unique, low-interest loans for underserved communities such as women, minorities and rural businesses.

Over the past four years, bank small business lending under $250,000 has decreased by 60 percent in number of loans and 48 percent in dollar terms. The Small Business Revolving Loan Fund will provide low-interest loan capital to alternative lenders – community development financial institutions, credit unions, and the like – to address the small business credit crisis and get millions of dollars into the hands of small businesses quickly. These alternative lenders have a history of serving businesses experiencing difficulty accessing traditional credit markets; they offer more flexible underwriting and often provide other technical assistance to help businesses stabilize and grow.

Carol Chernikoff, Chief Lending Officer at Alternatives, is excited about the opportunities the fund affords. “This will enable Alternatives to continue our work with small businesses in the community, addressing unmet needs and growing the local economy.”

The allocations made to Alternatives will support microlending of $25,000 and below, as well as larger small business lending of up to $250,000 or above.

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