Greater Nevada Credit Union lending for a greater… Louisiana
CREDIT UNION: GREATER NEVADA CU CATEGORY: SMALL BUSINESS LENDING NOMINATED BY: GREATER NEVADA
AS ITS NAME IMPLIES, GREATER NEVADA CREDIT Union tries to stimulate the Silver State economy.
But the $729 million CU, based in Carson City, Nev., has a small business lending program that is booking loans in Louisiana — far from Nevada’s deserts and mountains.
GNCU has had much success participating in a lending program through the U.S. Department of Agriculture. Not only did the USDA program grow Greater Nevada’s loan portfolio, the CU said it controlled risk because the USDA typically guarantees up to 80% of the loan. The loans are revenue generators, GNCU added, carrying interest rates between 5 percent and 6 percent.
GNCU launched its USDA program in 2013 and grew it to fund more than $120 million in 2016, making it the first credit union recognized as the USDA’S Lender of the Year.
The program is on pace to fund more than $200 million by the close of 2017, and GNCU said this rate of production can generate $10 million in annual income for the credit union and its participants.
GNCU said it has funded so many USDA loans, it launched a participation program for other credit unions in 2016. Participating CUS receive a “quality loan to hold,” a piece of the underwriting fee and a pro rata portion of the premium from the sale of the guaranteed portion. The program allows CUS to earn revenue without having to hire a full-time underwriter and develop years of market expertise.
One of the Louisiana companies that has benefitted is C-dive LLC in Houma, La. Robbie Champagne, the maritime-support company’s president, said, “thanks to the financing that GNCU and its partners provided, sales and net operating income are the highest in the history of our company. We have cornered the market and are booking work well into next year to meet demand.”
Jeremy Gilpin, GNCU’S VP of commercial services said the C-dive loan is a perfect example of how the partnership — which included a local consultant, a Lousisana-based CU and a Louisiana-based community bank — works, adding, “successful companies create more jobs and a better quality of life for families,”
Greater Nevada CU won the 2016 Lender of the Year award from Louisiana Economic Development and the U.S. Department of Agriculture for the CU’S role in supporting small businesses and Louisiana’s economy.