Minnesota Credit Unions Provide Over $ 624 Million In Business Loans | 2020-05-05
Since the COVID-19 pandemic hit Minnesota, state credit unions have brought relief to Main Street through business loan payment extensions and Paycheck Protection Program loans. .
Credit unions across the state are responding to the economic impacts of the pandemic by helping businesses access loans and navigate resources.
A recent survey of more than three-quarters of Minnesota credit unions indicates that:
- 890 commercial loan repayments were extended for a total of $ 624 million
- $ 132 million in PPP loans were granted in the first round of financing
“In these unprecedented times, we believe it is important to do everything possible to provide financial support and resources to our members and our community,” said Aaron DeJong, President and CEO of Red Wing CU. “Participating as a lender in the SBA’s Paycheck Protection Program has been an important way to provide direct support to small businesses in Red Wing and surrounding areas. The idea that we are helping local businesses maintain their employment levels over the next few months is extremely gratifying. “
“We have helped 237 businesses and nonprofits in rural central Minnesota,” said Chuck Albrecht, CEO of Mid Minnesota FCU (Brainerd). “This includes a sanitation company that was about to lay off 50% of its workforce due to the lack of seasonal traffic in the cabins; 8 non-profit organizations; and several companies that have been turned away from their large primary financial institution without accepting additional claims. “
“We believe that the impact on our community will be better if we are involved,” said Chris Guarnera, vice president of commercial sales for RBCU. “It is important for us to support the people who have supported us over the years. RBCU (Bloomington) loan applications come from a variety of business owners of different sizes. Their smallest loan was $ 2,200 to a sole proprietorship; and no loan exceeded $ 750,000, Guarnera said.
The Minnesota Credit Union Network has collected feedback from business owners who have received PPP extensions or loans:
- Luke Petrich, Building Blocks Learning Center, shared this about Members Cooperative Credit Union (Duluth): “You saved the day !! You are… the unsung heroes that people don’t talk about. You saved our business! Your work allows us to stay open, to pay our staff, to care for our community, [and] you have had a direct impact on the lives of about twenty employees and about 110 kiddos in our program !!! Be proud of your work… there are no words that can adequately describe how grateful we are for you and your team !!! You are all Rock Stars !!! ”
- City & County Credit Union (St. Paul) assisted an independent salon owner and received this testimonial: “I want to thank you for all of your help with the P3 program. I received my money this morning! I appreciate your efforts to get me in and I’m super impressed with CCCU! The people I know who applied weeks before me haven’t seen a dime yet! I owe you a haircut when I get up and running again! “
- TopLine Federal Credit Union (Maple Grove) said it has established 19 new business relationships helping small businesses through the application process. One member commented: “Amazing. This ensures that I will start the process of converting everything to TopLine. When I met you a few years ago this was exactly the kind of banking relationship I was looking for and you won all of my business and more. I can’t thank you enough.
- The Central Minnesota Credit Union (Melrose) has received over 1,200 P3 applications since the program began and has worked tirelessly to support members and non-members. One candidate wrote “You are amazing. I am so happy to have contacted you and CMCU. Your first call to me was on a Saturday afternoon, I submitted my application on Friday afternoon. Then you emailed me last night after 9 p.m. The fact that you were working those kinds of hours for someone you’ve never met and who wasn’t even a client of yours says a lot about your character and work ethic. Thank you from the heart.”