GFA Federal Credit Union Signs With Salus to Provide Microloans

James Chemplavil

GFA Federal Credit Union’s mission is to be the trusted financial partner for all life’s occasions. Partnering with Salus, a fintech laser-focused on financial inclusion and equity, to offer fast, easy microloans to its members brings the credit unions one step closer to achieving that mission.

“Microloans are a powerful tool for financial inclusion,” GFA EVP/Chief Lending Officer Tom McGregor said. “With no credit check, low interest rates, and quick access to funds, they provide members with a reliable alternative to high-cost payday loans—offering help without harm.”

“Salus is very pleased to partner with GFA because our missions are so well aligned,” Salus Founder/CEO James Chemplavil said. “Our data analytics show that credit union members across the country use predatory payday lenders, pawn shops and other unscrupulous lenders to get cash fast. Now, with neobanks luring credit union members away with microloans, they’ve really shifted from a nice-to-have to a must-have.”

Microloans are leveraged by a broad spectrum of people. In addition to serving historically disadvantaged areas, millennials and Gen Zs, who have thin to no credit files, show strong use of microloans. According to Salus data, fully 90% of microloan borrowers are 41 or younger, making another compelling argument for credit unions to offer them.

McGregor added that it was crucial to partner with a fintech that believed in the same mission GFA did, which led him to Salus. He continued, “As emergencies can be unexpected, with Salus supporting us in this initiative, we can lend in minutes so the funds can be there for our members when they need it the most.”

The $670 million credit union, located in Gardner, Mass., is a low-income designated credit union with branches in underserved communities. GFA is committed to creating inclusive financial solutions that build trust, foster long-term relationships and strengthen our communities.

“By offering microloans and other member-first services, we help protect our members from financial harm and ensure their well-being remains at the center of everything we do,” McGregor said.

Salus was created to help level the financial services playing field for everyday people, like Chemplavil’s son’s preschool teacher, who lost her job because she couldn’t afford to repair her car. A few hundred dollars would have made an enormous difference in her life.

Salus leverages alternative data analytics to offer automated microloans to credit unions so they can more effectively serve microloan borrowers at scale. In addition to microloans, the fintech can provide credit unions with its proprietary Salus Stress Score to help leaders stay on top of how the credit union’s portfolio is performing down to the individual loan. That capability allows the credit union to proactively help members who are experiencing financial stress with dignity.

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