Azra and Mark introduce Inclusiv's new business lending program for credit unions in New York state. 

WHAT YOU WILL LEARN IN THIS EPISODE:

✅ How CDFI credit unions can launch or expand their small business lending programs through Inclusiv's eight-week Small Business Capital Initiative training that covers regulations, portfolio development, and community outreach strategies.

✅ The benefits of Inclusiv's loan participation marketplace for credit union small business lending, including how credit unions can buy or sell loans while Inclusiv co-invests to share both opportunity and risk with participating institutions.

✅ How the loan loss fund provides up to 20% guarantee on charged-off loan balances for community development credit unions engaged in the loan participation marketplace, helping reduce risk for both buyers and sellers.

✅ Strategies for credit union lending programs to strengthen their presence in local communities through effective small business technical assistance, marketing outreach, and building high-touch relationships with business lending members.

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TIMESTAMPS:  

00:00 Introduction to credit union services and business lending solutions, including loan participations, SBA lending, and loan workouts for credit unions nationwide and Puerto Rico

01:26 Azra shares her career journey in community economic development and working with CDFI credit unions to expand financial inclusion for underserved communities

04:07 Discussion of the community outreach of credit unions, making them different from the banking industry 

06:05 Overview of Inclusiv as a CDFI network supporting community development to help low and moderate-income communities achieve financial inclusion 

08:33 Details on Inclusiv's Small Business Capital Initiative training program launching October 1st, an eight-week course for credit unions to serve small business loan programs 

11:28 Explanation of Inclusiv's loan participation marketplace and loan loss fund, and the new Inclusiv Business Forward, helping CDFI credit unions expand small business lending 

KEY TAKEAWAYS:  

💰 Inclusiv's Small Business Capital Initiative training is an eight-week program designed for credit unions looking to start or expand their small business lending programs, covering everything from identifying community lending needs to navigating NCUA and SBA regulations with expert guidance.

💰 The loan participation marketplace allows CDFI credit unions to manage risk and strengthen liquidity through small business loans and mortgages, with Inclusiv co-investing alongside credit unions and offering a loan loss fund that provides up to 20% guarantee on charged-off balances.

💰 The new Inclusiv Business Forward program in New York State enables community development credit unions to purchase up to 35% of each small business loan, specifically targeting socially and economically disadvantaged entrepreneurs who have been historically excluded from affordable financial services.

💰 Success in credit union small business lending requires more than just loan products; it demands assertive outreach and marketing strategies, deep community engagement, and high-touch relationships that distinguish CDFI credit unions from traditional banks in serving underserved communities.

ABOUT THE GUESTS:

Azra Samiee - LinkedIn

Small Business | Inclusiv

RESOURCES MENTIONED: 

Mark Ritter - Website

Mark Ritter - LinkedIn

SEO KEYWORDS: 

Credit Union Conversations, Mark Ritter, MBFS, Credit Unions, QSO, Credit Union Small Business Lending, SBA Lending, Community Development Credit Unions, Small Business Loan Programs, Loan Participation Marketplace, CDFI Credit Unions, Financial Inclusion, Underserved Communities, Inclusiv, small business lending programs, community outreach strategies

[00:00:27] We can help out with some sales with participations, SBA lending. Uh, really we'd love to have that conversation and see where your pain point is. Uh, unfortunately, some people have been having pains with some loan workouts these days, so we also help out on that regard as well. So joining me today. Is Ezra Sammy e and hopefully I didn't butcher her name too much from Inclusive.

[00:00:54] Azra Samiee - Guest: I'm well, thank you so much.

[00:01:16] So, uh, I always like to, to have people start out, introduce yourself and what you're up to, and, uh, kind of give me your us your background and career journey.

[00:01:37] I joined Inclusive in February of this year, but I've spent the greater part of the last 17 years working in community and economic development, specifically with a focus on working with underserved communities, build and preserve wealth. I started this work in San Francisco as a housing counselor where I worked with first time home buyers and families [00:02:00] facing foreclosure, and then I continued this work when I moved to Brooklyn, New York in 2012.

[00:02:32] Prior to joining Inclusive, I worked at a New York City based nonprofit called Hotbread Kitchen, where I spent four years running their small business programming and working alongside food entrepreneurs that were looking to grow and scale their business and, and really ultimately access capital so they could get to the next phase of their.

[00:03:16] Mark Ritter - Host: I would not be a good person to work with local New York City, small business food entrepreneurs.

[00:03:32] Azra Samiee - Guest: Yeah, so we worked with a food entrepreneur that her, her business was called BB Bakery. It was Iranian inspired desserts, and she was most, most known for baklava, which was,

[00:03:49] Yeah.

[00:04:01] Mark Ritter - Host: That's great. And what, so what did you think of credit unions when you first hopped into, uh, working with them?

[00:04:21] Brooklyn Cooperative and its nonprofit affiliate Grow. Brooklyn was focused on providing technical assistance to folks, and so that was through housing counseling. And I, I really love the way in which the two in the organizations worked together. We provided technical assistance and, and a, a large foundation for education about how people could navigate and have access to financial services, and the credit union stepped in to ensure that folks had continued to have the resources and support they needed through.

[00:05:08] Mark Ritter - Host: Yeah, that's really why I, why I enjoy credit unions.

[00:05:20] Azra Samiee - Guest: Yeah.

[00:05:26] Azra Samiee - Guest: Yeah. I think, yeah. I, you're, I mean, you're right. And I mean, I don't know about the fired, but you're right.

[00:05:57] But I think that's, that was like a [00:06:00] really critical moment for me as well, I think, and I think I know.

[00:06:27] But at the Inclusive Conference, I always run out. No matter how many handouts I bring, I always run out of them. So tell people a little bit about kind of inclusive as a whole. 'cause I couldn't do it justice, so Go ahead.

[00:06:52] They, we really do a great job of facilitating a engaging and friendly com, you know, week. Week [00:07:00] long of events. Well inclusive, as you know, is a national nonprofit. We were founded 51 years ago, and we are the leading network of community development credit unions. We are also A-C-D-F-I. Um, we have about 500 member credit unions across the us, Puerto Rico, and the US Virgin Islands.

[00:07:46] Mark Ritter - Host: Uh, that's great. And I know you're, you're focused on the small business side. Yeah. And we, we, MBFS. You know, I, I hate to say it, but I say it, you know, we're kind of a cookie cutter, qso. You need something [00:08:00] underwritten, we underwrite, we help you with policies. We will do the loan servicing, participations, all of those nuts and bolts types of things.

[00:08:33] Azra Samiee - Guest: Yeah. I'm, uh, over the last couple years we've developed and deployed a, what we call the small business Capital Initiative training. It's great that you mentioned it because we are launching a new cohort October 1st. So credit unions that are interested are encouraged to apply and the training is an eight week program designed specifically for credit unions that want to [00:09:00] start or grow their small business lending.

[00:09:20] Mark Ritter - Host: We're happy to join it.

[00:09:34] The goal and the, the ultimate goal of the program is for, there's a capstone project, but the ultimate goal is that these credit unions will either develop an implementation plan that will support them with either starting a small business lending program 'cause many of our particip haven't, or expanding the role of their lending program within their credit union.

[00:10:23] How do we identify them? How do we have communications? Yeah. And. That's really what the inclusive program is all about.

[00:10:50] And that, you know, that. We're not just providing information on regulations and how to develop a lending portfolio, but also how to [00:11:00] reach members. Like what is really emphasizing the importance of a strong outreach and marketing strategy and, and being really embedded in the, the communities in which they are, in which they serve

[00:11:20] With the the loan loss fund and, and, and, and give people a little bit, some highlights on the New York State program. Sure. That they're kicking off too.

[00:11:38] The marketplace currently facilitates small business loans, residential solar loans, and mortgage loans. And what makes this loan participation marketplace? Unique is that inclusive co-invest alongside credit unions and where we share both opportunity and risk. And, and so credit unions have the opportunity to either buy or sell, sell [00:12:00] loans through the marketplace.

[00:12:22] So that's, that's a, a, a program that is not just available through our small business lending, but is, as I mentioned, available, we facilitate residential solar mortgages as well. And then most recently, and what I am most excited about. Is this new initiative that we launched called Inclusive Business Forward, and it's a, it's a, an initiative to grow small business lending among CDFI credit unions in New York State.

[00:13:19] And, and this is really beneficial to the credit union because it helps them reduce risk, increase liqui liquidity, and we're really strengthening. Really working to strengthen the, the ecosystem of the credit unions and, and their presence within a local community because inclusive takes a lead on a, the, the outreach and marketing to small business owners for this program.

[00:14:12] So thank you for having us joining me today. Uh, we're gonna have you on in a future episode where we're gonna have a little more fun, but if somebody wants to get in touch with inclusive to talk small business and how you could help 'em, uh, what should they do next?

[00:14:41] Mark Ritter - Host: Alright, small business@inclusive.org. Joining me today was Ara Sammy e from Inclusive. They are doing great things with small businesses. I really encourage you to check them out and see how they can help and partner with your credit union. This is Mark Ritter, your host of Credit Union Conversations.[00:15:00]