Presentation on Credit Unions and Buying Cooperatives
By Michael Dalto, Presenter, Maryland Assistive Technology Guaranteed Loan Program
First Annual Alternative Financing Program Conference
December 1 - 2, 2000

Credit Union Advantages

Non-profit and member-driven
Willing to approve riskier loans
Offers lower interest rates, flexible terms
Generally more customer-friendly
Usually less bureaucratic

Maryland State Employees Credit Union (SECU)

Loan amounts - $500 - over $20,000
Loan terms - 1 - 7 years
Interest rates - 1 point below prime for guaranteed loans, bought down according to program's discretion. 1 point below prime for non-guaranteed, unsecured loans
Guarantee percentage - 100% first year, negotiating down to 50% for year 2
Guarantee with a hand shake - no deposits in SECU

SECU Membership

Open to:

State employees, retirees and their relatives
Students and alumni of 13 Maryland colleges and universities and their relatives
Staff and faculty of 6 community colleges and their relatives

Maryland AT Co-op

Created to provide AT price discounts for school systems and other agencies
Negotiated discounts on 249 products from 31 manufacturers
Average discount:32%
Saved member organizations $500,000 in first 18 months

AT Co-op and Maryland's AFP

Partnership to extend discounts to borrowers
Co-op offers lesser discounts to individuals
Pursuing grants to establish clearing houses to pool individual orders; offer same discounts as for groups