Providing small loans to businesses and consumers is a core service that distinguishes credit unions from other financial institutions. Credit unions know that microfinance can drive job creation, increase asset building among low and moderate income individuals, provide a pathway for immigrants and reduce poverty in communities across the United States. Credit unions have been at the forefront of efforts to provide safe and affordable consumer loan products and alternatives to high cost, predatory loans.
The Federation has worked with credit unions to develop and promote small dollar consumer loans that can, for example, provide alternatives to payday loans or help build bridges to citizenship for immigrants. The Federation builds credit union capacity to deliver these important financial products and services to underserved communities by enhancing credit union exposure to best practices in the field as well as tools to analyze their own business practices and determine appropriate strategies to build successful portfolios.
Learn more about the Federation’s Technical Assistance and Consulting Services available to credit union’s interested in developing a microlending program.