SEATAC, Wash.–Credit unions may often talk of how they are local organizations that keep members’ money local, but during one meeting here they were given an introduction to the fact they’re not the only local game in town.
Representatives from three organizations serving start-up businesses in the Pacific Northwest—where local fare and various craft businesses thrive—shared their reasons for being and how they operate with credit unions attending the Northwest Credit Union Association’s MAXX annual conference here.
Two of the three organizations have a sponsorship relationship with the same CU, and all three indicated they are open to additional relationships of all kinds with credit unions.
Here’s a look at what each of them had to say about what they do:
Erin Nelson. Co-Director
Seattle Good Business Network
Seattle Good Business Network, a coalition whose vision is a vibrant, inclusive economy that supports resilient, prosperous and joyful communities. The organization said it seeks to inspire people to buy and invest locally.
The Seattle Good Business Network provides numerous services to Seattle start-ups and maker businesses. It operates the Seattle Made program, which was launched in March of 2015 and now has about 400 members. Membership criteria include being a business with the intent to grow and to do manufacturing within the city limits of Seattle.
“We allow businesses to differentiate themselves,” Nelson said. “We provide the nuts and bolts, access to capital, access to space and workers, and we connect all the members on an online platform so they can collaborate with each other.”
Seattle Good Business Network has a relationship with BECU, which provides support.
“BECU came on with funding for the launch of the Think Local campaign in 2010,” said Nelson. “They really understand that their members are the heart of the organization. They were instrumental in helping us to launch Seattle Made. BECU got very creative and went out on a limb with us. Last year we launched a matching loan fund in which BECU partnered with city of Seattle and Seattle Bank and created a fund of $250,000 to make 0% loans to Seattle Made businesses that could crowdfund the other portion of their fund. We successfully funded six businesses.”
Beto Yarce, Executive Director
Ventures, Seattle
Ventures mission is to help low income entrepreneurs, according to Yarce. Founded in 1995, it serves 800-1,000 small businesses per year, 66% of which are run by women. It is also a CDFI micro-lender whose average client supports a family of three on $22,267.
Ventures has four program areas: business training, financial services, retail incubator, and a food business incubator.
Of interest to credit unions, the organization does peer loans from $1,000 to $5,000 that require no collateral. It also offers an Asset Plus Loan, which is to help build credit, and a Business Builder Loan that offers loans from $5,000-$35,000. In addition, it also has a matched savings program.
Yarce said Ventures has helped 2,500 businesses to launch and has done more than $1 million in micro-loans. Those businesses, he said, on average after 18 months, 65% are in business and generating revenue, up from 33% at intake. Thirty-four percent of those who were dependent on government aid no longer are.
Yarce said BECU has provided support to Ventures for a decade. A goal, he said, is to turn its clients into members of BECU.
Matt Preston, Communications Director
ADX Portland
The company has a 14,000-square foot facility it describes as a “maker space, fabrication shop, education center and business accelerator.”
“At our heart we are a maker space,” he said of ADX Portland, which is privately owned and which operates Portland Makes. “It’s essentially like a gym membership; you pay a monthly membership ($200) and you get access to a million dollars in tools, such as wood shop, metal shop, screen printing, jewelry, sewing, a shared kitchen, digital design and more.”
Preston said the formula at ADX Portland is “Collaboration + Shared Knowledge + Collective identity = A Modern Renaissance.”
“I’ve seen at least five businesses get started just from discussions over our kitchen counter,” he said. “Portland Made is a brand. This is the collective identity. In process of building an ecommerce store in which everyone comes together, because the hardest part for small makers is getting into a retail store.”