HICKORY, N.C. (11/19/13)--U.S. Rep. Patrick McHenry recently visited Mountain View Volunteer (N.C) Fire Department and learned how Local Government FCU, Raleigh, N.C., developed a loan program specifically to meet the needs of non-profit emergency responders in North Carolina.
|U.S. Rep. Patrick McHenry (R-N.C.) recently visited Mountain View Volunteer Fire Department and learned how Local Government FCU developed a loan program to meet the needs of non-profit emergency responders in North Carolina. From left, Sherrod Warwick and Bill Carter, Local Government FCU, Lt. Paul Exon, Chief Tony Holsclaw, firefighter Sarah Loria, firefighter Mickey Lasone and Lt. Bryan Lynch of the Mountain View Volunteer Fire Department; and McHenry. (Photo provided by North Carolina Credit Union League)|
McHenry is the Deputy Republican Whip, helping to manage the legislative priorities of Congressional Republicans on the House floor. He is a member of the House Financial Services Committee, where he serves as chairman of the Oversight and Investigations Subcommittee.
McHenry met with the staff at the fire station, and learned more about the loan program that Mountain View used to purchase a commercial property for the headquarters in its fire district, said the North Carolina Credit Union League (The Weekly Conversation Nov. 15).
Rural and volunteer fire departments sometimes encounter difficulty obtaining capital financing due to many lenders' lack of understanding of the departments and how they operate. To bridge the gap, LGFCU Commercial Lending, a division of $1.2 billion Local Government Federal Credit Union developed a loan program serve that need.
"We don't do anything that's really unique that banks don't do, but banks don't go after that segment of the commercial lender market, said LGFCU Commercial Lending Vice President Bill Carter. "Banks just happen to be on every street corner. We've established a department that is specifically focused to emergency responders across North Carolina.
"What makes us different is we don't work on quotas or commissions, and they now see us as experts in the field of capital financing for emergency service profit entities," Carter added. "It's not what we do that's different; it's how we go about treating and working with these mostly volunteer organizations that makes us different than any other lender--which is the credit union way."
By re-purposing an existing property to meet their needs instead of building a new structure, the department saved taxpayers an estimated $1 million. LGFCU Commercial Lending has assisted 21 nonprofit departments with 35 loans, totaling $6.5 million in McHenry's district.
Credit unions have been urging Congress to lift their MBL cap to 27.5% of assets from 12.25% so credit unions can make more business loans. Lifting the cap would help create 140,000 new jobs and inject $13 billion in small business loans into the economy, without costing taxpayers a dime, said the Credit Union National Association.