HARRISBURG, Pa. (4/29/14)--Officials from the Pennsylvania Department of Community and Economic Development Friday unveiled the Pennsylvania Capital Access Program (PennCAP) for credit unions.
The Pennsylvania Credit Union Association's Molly Snody, director of business advisory services, and Christina Mihalik, vice president of governmental affairs, were on hand for the announcement.
"This is a great tool to help credit unions make loans to those borderline small business borrowers and potentially boost the Pennsylvania economy," said Pat Conway, PCUA president/CEO (Life is a Highway April 28).
The reserve, owned and controlled by Pennsylvania Economic Development Finance Authority, is designed to cover future losses from a portfolio of loans that are made through this program. (See News Now March 19: Small-biz loan guarantee program available for Pa. CUs.)
Loans funded by PennCAP must be used for the purchase of land, building, equipment or working capital. There is no minimum loan amount, but they are capped at $75,000.