Credit Unions, Banks, USDA Loans, and GCL
We help credit unions and community banks participate in USDA-guaranteed commercial loans.
USDA Loan Programs Work for Lenders, Not Just Borrowers
Credit unions and other institutions originate commercial loans with the USDA, which guarantees up to 90% of the total amount. The institution can then transfer portions of the loans to investors on the secondary market, often for a premium, which helps with managing risk or generating fee income.
GCL helps institutions along this process in multiple ways – from due diligence, underwriting and servicing, to facilitating the sale of guaranteed portions of the loans and bringing other lenders in to participate in the unguaranteed portion, which can aid balance sheet management.
Do Well By Collaborating With GCL
Multiple ways to participate in and benefit from USDA commercial loan programs.
Underwriting
GCL can perform due diligence when an institution has a potential USDA-guaranteed commercial loan customer.
Selling
We help lenders sell the guaranteed portions of USDA loans and receive a premium.
Syndicating
GCL brings in lending participants for the non-guaranteed part of the loan.
Servicing
GCL handles the servicing of the USDA-guaranteed commercial loan.
Credit Unions Realize Multiple Benefits
Institutions can tap into a range of balance sheet and operating advantages when they collaborate with GCL on USDA commercial loan programs.
Diversification
Participating in loans originated by other lenders allows institutions to diversify their balance sheets.
Managing Risk
By lining up participants in the guaranteed portion of a loan, the institution only has to keep a portion of it on its book. This can help it modulate risk and keep its balance sheet in shape.
Solid Underwriting
USDA-guaranteed loans are thoroughly vetted, often underwritten three times – by the USDA, originating institution and GCL, when we are involved.
Support for Rural Businesses and Sustainability
USDA loans go to organizations in rural and under-served areas. Some are behind innovative, sustainable technologies. Other provide needed healthcare and food security.
Why Work With GCL?
From loan origination through portfolio management, GCL offers financial partners a broad portfolio of services to expand their financial capabilities and effectively manage risk and optimize their balance sheets and operation. We are credit unions and community banks’ “one-stop shop.”
