Leading the Charge to Bring More Jobs to NC
Release date: 2/8/2012
Winston-Salem, N.C. (February 9, 2012) – Representatives from Truliant Federal Credit Union traveled to Washington, DC this week (February 7 and 8) for the small business and credit union ‘Hike the Hill’ briefing, reception and press conference on Capitol Hill, where the representatives encouraged government officials to increase the small business member lending cap from 12.5% to 27.5%. Truliant was joined by two other North Carolina credit unions, small business owners who have been served by the credit unions and representatives of the North Carolina Credit Union League.
Paul Wilsey, Truliant’s VP of Business Services, and representatives from Permatech, a Truliant business partner, traveled to Washington, DC at the invitation of the Credit Union National Association (CUNA) and the North Carolina Credit Union League for the purpose of demonstrating that credit unions continue to be an invaluable resource meeting the needs of small businesses.
“Truliant wants to do more to help small businesses, and we’re proud to help initiate this national effort for credit unions to provide jobs and bolster the economies they serve by filling today’s void for business credit,” said Wilsey. “It’s very difficult to decline a loan to a small business owner who was turned away by a bank because our credit union has reached an arbitrary cap.”
The Credit Union National Association (CUNA) estimates that raising the cap will result in $13 billion in credit to small businesses and the addition of more than 140,000 jobs created nationwide in the first year, at no cost to taxpayers. CUNA projects that nearly 4,000 of those jobs would be available in North Carolina in the year ahead.
Legislation has been introduced in both the House and the Senate that would increase the current lending cap to 27.5%. Additionally, the cap would exclude loans of less than $250,000, and the House measure would also exempt loans from the cap that are made to non-profit religious organizations and in qualified underserved areas.
Permatech Inc, founded in 1972, is a recognized global leader in the manufacture of precast factory components and the engineering of molten aluminum handling systems for aluminum cast-house applications. Currently, Permatech has more than 80 full-time employees and 20 to 50 part-time employees. Despite repeated requests by the company for their business loans to be restructured; their former bank was unwilling to modify their loan terms. Truliant was able to help Permatech improve their facility, educate staff, upgrade equipment and invest in sales and marketing.
According Permatech owner Joe Trettel, the loan provides resources for the company to make improvements to the products and services it offers, increasing employee retention and new jobs as sales increase.
“With Truliant, we don’t just have a financial institution, we have a partner; a team of individuals with our best interests in mind who can help guide us to make the right financial decisions,” Trettel said.
While banks’ commercial lending has decreased by almost 15% nationwide, creditunions’ business lending during the same period has risen by 11%. Credit unions want to do more, according to Wilsey, but they’ve had to turn away borrowers because they’re up against the cap.
Truliant Federal Credit Union’s commercial and small business capabilities have helped generate jobs and support the local economy in communities served by the Credit Union. Over the last year, Truliant has helped more than 200 companies retain or create almost 500 jobs in the Triad and surrounding areas through conventional loans and loans guaranteed by the U.S. Small Business Administration (SBA).
A total of 75 small business and credit union representatives from 15 states are expected to visit their lawmakers in their House and Senate offices during the “Hike the Hill” event.