By Mary Hopkin
editor@tricitiesbusinessnews.com
Since Gesa Credit Union opened its commercial lending department more than a year and a half ago, it’s provided nearly $40 million to local small businesses.
Ben Rutledge, Gesa’s business lending manager, expects the Richland-based credit union to reach $60 million in commercial lending by the end of the year.
“Overall, banks are being very tight on commercial lending — very conservative — and they are trying to get their (lending) ratios back in line,” said Rutledge.
But as a local credit union, Gesa has money to lend.
However, Rutledge warned, Gesa doesn’t want to just be a source for a business loan.
“We really want to build relationships and help with all services a business needs,” Rutledge said.
Most recently, Gesa Credit Union provided a SBA loan that is helping TiSport LLC, a Kennewick-based company that makes titanium wheelchairs, move its offices and manufacturing facility from Kennewick to the former Food Pavilion on Court Street in Pasco.
And the credit union helped Vonda and Greg Smith, owners of Z Place Salon in Marineland Village, get financing to build a new 9,000-sq.-ft. salon and spa in Kennewick’s Southridge area.
“They were really great to work with,” said Vonda Smith, who hopes to have the new Z Place open by December.
Rutledge said Gesa has seen heavy demand for commercial loans since April 2009 – from businesses that are refinancing, to those that are seeking financing for expansions or new construction.
He said the area is seeing an increase in medical buildings because it has become a regional medical hub, providing services for those who live outside Benton and Franklin counties, drawing from Walla Walla, northeastern Oregon and beyond.
Nationwide, credit unions had an increase in business lending of 11 percent in 2009. At the same time, credit unions have been hampered by federal caps limiting what they can lend to businesses.
Credit unions business loans are capped at 12.25 percent of their assets, said Bill Hampel, chief economist for the Credit Union National Association, which is based in Washington D.C.
The industry association is lobbying Congress to raise that cap to 27.5 percent of total assets. An analysis done by the association showed that the reform could create as many as 108,000 jobs and make as much as $10 billion available to small businesses in the first year after the bill is enacted.
by Mary Hopkin
Tri-Cities Area Journal of Business
