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Michigan State University Federal Credit Union supports campus business incubator
More than half of all young people are interested in entrepreneurship, and a quarter are already self-employed, according to a U.S. Chamber of Commerce Foundation report. Millennials “have the ideas and innovative qualities of successful entrepreneurs,” the report suggests. “With more guidance, funding and encouragement, this entrepreneurial spirit may just run free and do its part in creating more jobs and helping rescue the economy.”
Michigan State University Federal Credit Union is doing its part to spark this spirit by supporting a business incubator on the MSU campus and offering “startUP loans” for small businesses in its tri-county region.
The credit union provided a three-year grant to double the size of “The Hatch,” a co-working space where students can pursue their entrepreneurial visions, to more than 2,500 square feet. MSU FCU also offers individual financial education and group workshops at The Hatch on topics like developing a business plan and incorporating a business, says CUES member April Clobes, EVP/chief operating officer for the $2.7 billion credit union with 191,000 members.
The Hatch is a shared workspace where students pursuing any field of study can collaborate to develop their business ideas with other students, university fellows, and mentors-in-residence. If they need additional funding once they launch their business, they can apply for an MSU FCU startUP loan, with a low rate on up to $15,000.
The loans are designed “to fill in some of the financing gaps, not fund a business in full,” Clobes explains. “They could provide unrestricted funds for marketing, to purchase equipment or develop a prototype on the way to seeking financing.”
MSU FCU has earmarked $250,000 for the loan fund and currently has about 10 startUP loans on its books, with recent graduates who developed their ideas at The Hatch and business owners who have been out in the workforce for a few years.
The credit union also participated in The Hatch’s design, which showcases inspirational quotes from successful businesspeople like Jeff Bezos of Amazon—and the founders of a financial cooperative that opened on campus 77 years ago. “We’re a big company now, but we started as a small volunteer organization,” Clobes says. “Our goal has always been to help members pursue their dreams and achieve financial security.”
Karen Bankston is proprietor of Precision Prose, Stoughton, Wis.
