Creating Opportunities and Creating Jobs

How many outstanding member business loans did credit unions report as of December 31, 2009? (Answer at the bottom)

On the back page of the March 22, 2010 issue of Politico  appeared a full-page ad from Goldman Sachs.



The accompanying text reads as follows:

In the U.S., small businesses create over 60% of all new jobs. Which means support for small business is support for the entire economy. That’s why Goldman Sachs has launched 10,000 Small Businesses, a $500 million initiative to provide small business owners with access to the resources they need to grow – like business education, mentoring and, most importantly, capital. More than ever, small businesses are the engines of economic growth. Let’s get them the tools to do what they do best. To learn more, visit gs.com/10000smallbusinesses

The microsite for 10,000 Small Businesses features a variety of resources, including a fact sheet (which is really just a .pdf of the microsite). The campaign is part of Goldman’s history of effective storytelling regarding its various initiatives. This particular initiative and PR campaign is partially necessitated by negative publicity, but that publicity has helped produce a finely honed message that is a good example for other financial institutions who want to tell their own story. The only hiccup to the site is the “News” section hasn’t been updated since November.

By running the ad on the back page of Politico, it is clear Goldman intends to build its brand and improve its image among more politically minded readers, including legislators, regulators, staffers, and others that are politically active.  Credit unions, especially those looking to increase the member business lending cap, may look towards institutions such as Goldman to gauge messages do and do not resonate with those capable of influencing legislation.

Most credit unions cannot replicate Goldman’s campaign, but there are plenty of opportunities to tell the story through local and national media. For example, Mid-Atlantic Federal Credit Union received great coverage in the February 9 issue of the Washington Post. There is definitely a need for small business credit and an interest in hearing about financial institutions that are able to provide it.

The March issue of the Callahan Report provides great examples of a credit union telling its story of small business lending and adding a personalized spin that makes the message more memorable. When other banks would not lend, Los Angeles Firemen’s Credit Union provided Firemans Brew the line of credit it needed to expand operations. In the process, the credit union created life-long members and mavens to help build the narrative of the credit union as an effective small business lender. As David Johnson, COO of Firemans Brew, nicely summarizes:

[Los Angeles Firemen’s Credit Union] are very easy to work with. There is much less trouble than working with a commercial bank and you get a decision quicker. Also there are no access fees, and with a small business like ours, that’s a huge help. In addition, the credit union works hard to support us, comes to our events, and really tries to help. Working with them is a really good fit for us.

Answer: 149,724.