Neighbors FCU builds business relationships through PPP lending
The Baton Rouge credit union and its new members share an “aha” moment about who’s there to help and how.
The Paycheck Protection Program brought with it a couple “aha” moments for Neighbors Federal Credit Union ($1.1B, Baton Rouge, LA) and the small-business people who came to the cooperative for help.
For the businesspeople, it was the realization that a member-owned cooperative like Neighbors could help them access the PPP pipeline. For Neighbors, it was the realization the cooperative could help its new members beyond the payroll.
According to Anthony Pitalo, vice president of commercial deposits at the Pelican State institution, Neighbors closed 435 loans for approximately $16 million and added 203 new members with commercial accounts during the first round of PPP lending last spring. By year’s end, the cooperative had attracted 490 new business members. With referrals helping things along, the credit union reached 1,000 new accounts as 2021 dawned.
Pitalo, who spent eight years in commercial lending before taking over commercial deposits seven years ago, says Neighbors’ initial all-out effort was geared toward helping hurting small businesses in the community. But then there was an “aha’ moment.
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