Nusenda partners with Black Chamber of Commerce of New Mexico for Microloan Program

Nusenda Credit Union is adding a new lending partner to its Microloan Program — which values an organization’s ties and relationships in a community over credit history.

The credit union is partnering with the Black Chamber of Commerce of New Mexico, formerly the African American Greater Albuquerque Chamber of Commerce, for the program — making the Black Chamber the 21st local organization to partner with Nusenda. The program, which got its start in 2018, offers loans from $250 up to $10,000, said June Manning, Nusenda’s manager for microlending programs.

The program, formerly known as Nusenda Co-op Capital, finds partner organizations such as the Black Chamber. Those organizations then create an application process for entrepreneurs and small businesses to apply to, some of which are then recommended to the credit union for loan funding. Manning says it is a different approach from how banks typically lend, which prioritizes credit history and other financial factors. With this program, partner organizations draw up the requirements for businesses to be recommended for loans.

“This program sort of flips the underwriting model, and borrowers are identified through a community organization rather than us as a financial institution,” Manning said. “They’re usually a community member (or) entrepreneur that has a relationship with an organization… The organization identifies the people that need loans, they receive the application, they perform the underwriting and then Nusenda comes to help collateralize those loans, as well as service (and) facilitate the loans, and then manage the loans on a long-term basis.”

For the Black Chamber, the application process draws not only on relationships — businesses and entrepreneurs looking to apply must be members of the organization — but on a solid financial history, says Herb Crosby, an adviser for the Black Chamber. He said businesses that are looking to get loans through the Black Chamber must prove that they can keep on top of their bills, like making rent or utilities payments on time.

“We’re looking at businesses that are product-oriented,” Crosby said.

Added Black Chamber President and CEO Karla Causey: “We target the underserved and under-resourced. As the Black Chamber of Commerce (of New Mexico), of course, our target is Black businesses. But we do look at others that are underserved and under-resourced if they don’t have another place to go.”

Causey said businesses and entrepreneurs looking to join the chamber can find more information at bccofnm.org. She said the Black Chamber, which changed its name last year, is focused on supporting businesses and entrepreneurs across New Mexico instead of just the greater Albuquerque area.

The program aims to build on the state’s already prolific small-business landscape. According to the U.S. Small Business Administration, there are more than 158,000 businesses spread across New Mexico.

Sara Keller, the senior vice president of community engagement for Nusenda, said the Microloan Program to date has lent more than $2.3 million and over 400 microloans across the state.

“We’re committed to making a positive difference in the lives of our members and the communities where they live,” Keller said. “And so this is one of the ways that we do that.”