PITTSBURGH, PA (January 14, 2020) The board of the Urban Redevelopment Authority of Pittsburgh will vote Thursday on establishing a $150,000 program at the Hill District Federal Credit Union providing lines of credit to women and minority-owned small businesses.
The URA has several efforts to assist such small businesses including the Micro Enterprise Fund loan program, M/WBE programs services, Catapult, the Riverside Center for Innovation’s Diversity Business Resource Center BizFit Program, and the Credit Building program in partnership with Axiom. All these efforts serve in part to support the financial, technical assistance, and professional capacity building needs of small M/WBE businesses.
It is clear small businesses could also benefit from affordable lines of credit. Capital access is a critical piece of sound cash flow management for small contractors as they take on work — to have the necessary upfront cash to hire and source materials and equipment as new jobs.
The Hill District Federal Credit Union has long worked with private lenders and others to operate business line of credit programs. The new program would initially allow for 14-28 new lines of credit with opportunity to grow as repayments revolve. The minimum line will be $5,000 up to $10,000.
This authorization will allow the URA to make a non-member deposit in the Hill District Federal Credit Union to fund a small business line of credit program. The deposit will be used as a guarantee against the lines of credit. Lines of credit will be approved or declined based on the lending guidelines of the Hill District Federal Credit Union.