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JetStream Federal Credit Union got a boost last fall in its bid to become the leading lender serving low- to moderate-income business owners in Dade County, Fla., and Puerto Rico—in the form of a $1.2 million Community Development Financial Institution grant.
The $165 million credit union serving 20,000 members started working on its CDFI certification in 2011, the same year it launched business lending. JetStream FCU applied unsuccessfully for a business lending grant in 2013, but had better luck on its second try.
The grant funds “allow us to be a little bit more open-minded and flexible in our underwriting,” says JetStream FCU President/CEO Jeanne Kucey, a CUES member. “Business owners have to fit into a certain box defined by underwriting standards to get approved for a business loan. This grant makes that box a little bigger.”
Many of the credit union’s business members have had the “entrepreneurial spirit thrust upon them” by a tough job market, but they have met those challenges with ingenuity, notes AVP/Business Services Leo Navarro. JetStream FCU has made business loans to a bakery that is now a regional operation, an air freshener business that serves car washes, and a music producer who financed a sound recording booth for mixing jingles and background music for commercials.
Three-fourths of the CU’s field of membership qualify as low-income, and many business members appreciate that Navarro and his staff are bilingual. They also appreciate the support and guidance the credit union provides in assembling a business plan and other documentation needed for their loan applications. JetStream FCU has developed a strong niche, making loans under $50,000 to business owners who fall under the radar of most commercial banks. The CU’s business lending portfolio totals just under $11 million.
“There’s a lot of uncertainty when it comes to applying for a business loan,” he says. “It’s not like a car loan. It’s harder for members to know how they’re scored. We walk the people through the process, do a lot of consulting about financial management and keeping the books, and even help them connect with local business partners and suppliers.”
JetStream FCU worked with CU Strategic Planning, a CDFI grant writing and marketing consulting firm, on the successful grant application, but Kucey says she still felt as if she were taking on another part-time job to complete the 35-page application with accompanying 40-page narrative and respond to follow-up inquiries. “But it was worth it, because this grant will allow us to serve our members with greater resources,” she adds.
Karen Bankston is proprietor of Precision Prose, Stoughton, Wis.
