by Alison Storm | 07/7/10

Along with a month's supply of toilet paper and four gallon tubs of mustard, Sam's Club shoppers will now be able to secure loans of up to $25,000. According to the Wall Street Journal the warehouse chain is launching the loan program as a way to separate itself from other retail chains like Costco and BJ's Wholesale Club. A major part of Sam's Club's customer base is small business and this is another service that will appeal to those people. "Access to capital is a major pain point for our members and the small business Main Street community,"Catherine Corley, vice president of membership at Sam's Club, told the Wall Street Journal. "We believe this pilot program is a step in the right direction to help fuel small business growth."

Experts say this is the first program of its kind and may help Sam's Club, which has experienced hardship in recent months. Ten stores were closed in January and 10,000 staff members were let go. Dozens of stores are getting remodeled right now and their face lifts should be complete by early next year.

Basically Sam's Club will serve as a middle man, partnering with an outside lender. The lender will handle logistics and give Sam's Club $50 for each funded loan. The loan program will focus marketing efforts on minority-, women- and veteran-owned businesses. "It seems like a traditional program done in a unique way," Carl Tobias, Williams Professor at the University of Richmond School of Law, told the WSJ. "It benefits Sam's by potentially adding members and can aid existing members." But some wonder if the customer experiences problems with the loan whether Sam's Club will suffer.

A recent survey completed by Sam's Club of its members found that nearly 15 percent of business members had been denied by a loan. Under this new program, those who qualify would receive between $5,000 and $25,000. The loans will have 10-year terms and will not issue a penalty for early repayment. This program will also be offered online.