For Small Businesses Affected by the Credit Crunch, SBA Loans May Offer Alternative Financing

Tech CU and Other Credit Unions Are an Excellent Resource for Those Seeking Alternative Financing and Help With the Financial Management of Their Business

SAN JOSE, CA--(Marketwire - April 21, 2008) - Today's tightening credit standards and sluggish economy have made it more difficult for small business borrowers and owners to access capital for operational and general business purposes. For those who have had problems qualifying for financing through normal lending channels, SBA-guaranteed loans may provide an alternative, and credit unions like Technology Credit Union (Tech CU) in the Bay Area are increasingly offering these loans to their small business members.

Tech CU launched its small business services program in 2006, providing SBA-guaranteed loans ranging from $25,000 to $2 million alongside products and services that assist small business owners in the financial management of their company. Today, the credit union is expanding those services through a partnership with Newtek Business Solutions to include additional support in the areas of digital bookkeeping, data storage, tax preparation and more.

"Small business owners are having a tough time of it right now," said Sarah Samuel, AVP of Business Services for Tech CU. "They're facing a contracting credit market and that's making capital hard to come by. There are alternatives available for financing, though many don't realize it. Credit unions like Tech CU are a great resource for finding those alternatives."

Requirements for SBA loans are generally more flexible and can be offered to a wider range of businesses. Financing can be guaranteed for a variety of general business purposes, including working capital for opening, expanding or acquiring a business; for purchasing machinery equipment, furniture and fixtures, land and buildings, leasehold improvements; and debt refinancing (under special conditions). In addition, the maturity period for SBA loans is typically longer than traditional loans -- up to 10 years for working capital and generally up to 25 years for fixed assets -- which can help make monthly payments more affordable for the small business owner.

In addition to its offering of SBA-backed loans, Tech CU also recently expanded its line of business services in partnership with Newtek to now include:

--  Business lending
--  Business plan preparation
--  Data storage
--  Outsourced digital bookkeeping
--  Tax preparation and advisory services
--  Web hosting, design and development

These expanded services are in addition to Tech CU's existing suite of products:

--  Health savings accounts (HSAs)
--  Payroll services
--  Cash management
--  Business checking accounts
--  Business savings, Certificates and money market accounts
--  Online banking and bill pay
--  Business credit cards, lines of credit and auto loans
--  Investment Property Loans (1-4 units) and Apartment Lending (5+ units)
--  Merchant processing for credit cards


Technology Credit Union is a full-service, financial institution serving individuals who work, live, go to school or regularly worship in Santa Clara, Alameda, Contra Costa, Santa Cruz, San Mateo and San Francisco counties. Tech CU was started in 1960 and is now among the top 1 percent of the nation's largest credit unions. With over $1.3 billion in assets, nearly 78,000 members and 10 full-service branches around the Bay Area, Tech CU is a leader in the credit union industry.

Contact Information: Contact Information: Tawnya Lancaster Public Relations Phone: 408-205-1618 Karen Rude Technology Credit Union Phone: 408-441-4736