I bet all of you are asking the phenomenal million-dollar question here: what do credit unions have to do with the White House?
First off, let’s go to what credit unions are (in case you’re not fully familiar with it).
The Age of the Credit Union
They’re like banks. Obviously. Let’s be real here — you readers out there are not vegetables, by any stretch; so naturally, you’ve seen these credit unions appear by osmosis everywhere. You’re not stupid.
But there are a few key points to know about why these credit unions are called ‘credit unions’ and not banks! First off….
See the difference there? Whereas banks serve the general public, credit unions are exactly that: unions. They’re clubs. And that’s not a bad thing.
It’s also not a bad thing that all these credit unions everywhere are turning to the White House for a proposal to increase lending amounts for small businesses in the effort to stimulate job creation.
Here’s the Scoop on That
President Obama will be considering that as law here very soon. There might be an increase in the lending cap.
Would that be a smart move in the effort to create jobs? Will that put credit unions way too high on the tier of financial security?
I mean, after all, banks have been around for centuries. They’re there to serve the public with everything from making change, to cashing checks, to the standard home loan. It’s a tried and true method of financial foundation.
That’s One Healthy Scoop of Ice Cream
As if ice cream were ‘healthy.’ In this case, it is!
Think of the credit union as a fat-free vanilla. That scoop for you and your small business means more money to get your company off the ground, get more employees to work for you, and obviously get more cash flow into your system for a better tomorrow —
Basically, in the long run, it creates more jobs! Can you deny that?
On the Other Hand….
The fact that credit unions operate as a ‘private establishment’ can possibly make it a little more difficult for many unions to ‘qualify’ for the lending cap increase.
Because you essentially have to be a member in a credit union, your financial stability as a union seriously has to be etched in stone for a lending cap increase to be a smart move put in by the President.
Banks have more security. They’re more ‘reliable.’ Unions, however, rely on the strength of their members.
So if you happen to be a small business looking for a financial boost, before you consider a credit union, don’t waste your time and investigate quickly on whether or not they can be approved for a loan increase from the government.
If they’ve got the goods, you’ll be good. If they don’t got the goods — you’ll find the goods elsewhere. In other words, be smart.
The White House Initiative: the Next Step
What will be the decision? And will it be a good one? Only time will tell. President Obama will tell.
The unmistakable truth is that credit unions have their advantages. But be sure to pick the right one if you’re a small business wanting to get started on the right foot. Or the right scoop.
Fat-free vanilla scoop, that is.