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Best Credit Unions & Business Loans for Small Businesses


Here is our list of best credit union and their business loans to fund your small business venture. Find the one that suits your financing needs best. For more information, visit at – PowerPoint PPT presentation

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Title: Best Credit Unions & Business Loans for Small Businesses

Business Financing
Having said that, apart from banks and
traditional lenders there are other compelling
alternative options availablecheck out the bet
credit unions for small businesses.
Finding business financing is among the major
task while running a small business. Whether you
need to open a business bank account, apply for a
credit card or need a business loans, having a
financial institution at your side can provide
you with the financial advice and support you
need to manage a successful business.
How do you know a credit union is the right
  • Credit unions provide personalized customer
    service and cost-effective financial tools to
    help small businesses grow. They also accommodate
    small businesses with the financial advice and
    services like retirement funds, small business
    loans, insurance, credit cards, checking and
    health savings accounts.

Read on this article to learn why you should use
a credit union for banking. We have also break
down our picks for the best credit unions for you
to start you search accordingly.
What Is a Credit Union?
You might have known generally, what a credit
union is. Practically, its a financial
institution that offers a variety of financial
products and services. Just like any of other
financial institution, credit unions provide
more-personalized service, lower cost on loans
and fee along with higher interest rates on
checking and savings accounts.
Everything You Need to Know About Credit Unions
Credit unions are cooperative not-for-profit
organizations, and the income they generate is
put right back into their operations. It act as a
mutually supportive system and it works best for
members, including small business owners. The
funding process is easier as compared to
banksmuch lower rates, fast approval process and
quick funding.
Credit Unions are community driven organizations
where members are part owners, and they vote on a
board of volunteers as managers. Since they are
integrally relationship-driven, they offer
personalized customer service along with
educational services and other benefits to their
There are certain requirements to become a member
of a credit union. Each credit union has its own
set of member-eligibility requirements and some
are more exclusive than others.
There are two main types of credit unions
federal credit unions and non-federal (aka
state-chartered) credit unions. Based on the
type, they are regulated and insured. Most credit
unions are federal based and are regulated by the
National Credit Union Administration (NCUA) and
backed by the National Credit Union Share
Insurance Fund (NCUSIF). Whereas non-federal
credit unions are privately insured.
Credit unions services as similar to banks abut
there are few key differences you need to know
before you opt to choose one. Banks offer more
rewards programs, credit card options, online and
mobile banking along with local branches and
ATMs. Credit union financing carry lower interest
rates and fees, but the same can be find from a
small local bank.
Types of Credit Union for your Small Business
America First Credit Union
Alliant Credit Union
Navy Federal Credit Union (NFCU)
First Tech Federal Credit Union
There are several different types of credit
unions to consider for your financial needs.
Self-Help Credit Union
Consumers Credit Union (CCU)
Digital Federal Credit Union (DFCU)
Boeing Employees Credit Union (BECU)
America First Credit Union
  • America First is a Utah based credit union and on
    top of the list because of their small business
    loan program among other products.

Their business loan program is alike a
traditional bank that offers various funding
solution in form of business acquisition loans,
equipment loans, commercial real estate loans,
SBA secured credit line (50,000 to 100,000),
SBA unsecured credit line (15,000 to 50,000),
term loans (up to 15,000), SBA commercial auto
loans (up to millions of dollars), working
capital loans, and franchise loans.
Business credit cards are another great product
of America First that involves cash back or
rewards earnings that can be customized based on
borrowers needs. Moreover, there are four
business checking account options, nine business
savings account options and five business
certificates account options. In addition to the
above-mentioned benefits, there is free online
bill pay, payroll, business planning, payment
processing, online statements, and E-alerts
services as well for business owners. The
membership eligibility is limited to borrowers
location where they live or work. In addition, it
operates in a few states, but its membership in
co-operative banking allow access to nearly
30,000 ATMs within the U.S.
Alliant Credit Union
  • Alliant is a Chicago based credit union with two
    physical branch locations. Just like America
    First, their membership in the co-operative
    banking allow members to have access to thousands
    of ATMs within the U.S.

Their best financial product is the commercial
real estate lending along with personal checking
and savings account. Their features incudes free
interest-bearing checking account with no minimum
balance or monthly service fee, high-yield
savings account, three IRA account, unsecured
personal loans (up to 50,000), and mobile and
online banking facilities as well. The
membership is very accessible and if youre
unable to qualify for their general membership,
you can join their partner charity, Foster Care
to Success, and then youll be eligible to join
Alliant. Once you join their partner charity, an
annual membership fee of 5 will be paid to the
charity on your behalf.
Navy Federal Credit Union (NFCU)
  • NFCU is the largest credit union in the nation.
    They offer a complete suite of services along
  • with a wide array of financial tools for families
    and individuals.

The features include three types of low-fee
business checking and business savings accounts,
term loans (up to 25,000), Business lines of
credit (up to 10,000), two types of business
credit cards with limits up to 15,000, online
and mobile banking, online bill payment, payroll,
merchant processing as well as two different Navy
Federal business credit cards. Moreover, they
also provides business and retirement insurance,
management tools, and six types of Navy
Federal business loans. You just need to be an
active service member, veteran, family of an
armed service member, or a civilian working for
the Department of Defense to qualify for the NFCU
First Tech Federal Credit Union
  • First Tech Federal is California-based credit
    union and is one of the most business-friendly
    credit union that
  • offers a wide range of online and digital banking

Their best product for small business is their
two business checking and three savings accounts
with as little as a 0 minimum balance
requirement. However, they not offer as many
business loan programs as other credit unions on
this list. While using First Tech Federal Credit
Union services, you can make transactions among
and outside First Tech accounts, detailed
financial statements, online bill payment, as
well as make online payment of your First Tech
loan or credit card payments. Additionally, the
features include five rewards credit card,
commercial real estate loans, and personal loan
options with over 40 physical branches and
30,000 ATMs. In order to qualify as a member,
youll need to be employed in a First Tech
sponsor company or work for the state of Oregon
or work or live Lane County, Oregon or be a
member of the Computer History Museum or
Financial Fitness Association.
Self-Help Credit Union
  • Self-Help is a North Carolina-based credit union
    that provides services for conventionally
    underserved communities along with financial
    tools for nonprofits and small businesses. Their
    best lending product is the Self-Helps small
    business loan program.

The features of Self-Help credit union include
business savings account with no monthly fee,
business money market account, specialized loans,
term business certificates with APYs up to 2.48
for a 60-month account, digital banking, term
loans up to 250,000, commercial loans, SBA 504
loans, and New Markets Tax Credit Loans, loans
for green businesses and recovery loans for
businesses. In order to qualify, youll need to
live, work, or study in an eligible county, meet
certain family or employer criteria or become a
member of the Center for Community Self-Help,
which requires a 5 fee.
Consumers Credit Union (CCU)
  • Consumers Credit Union (CCU) is a Illinois-based
    credit union that provides business savings
    account, business money market account with a
    minimum 500 fee,

Four business checking accounts options with
little fees, merchant services with included
point-of-sale system or software if youre an
online business, three different business savings
accounts, and Visa business credit cards with
digital banking services. Their business loan
program includes commercial mortgages, equipment
loans, business lines of credit, and construction
and development loans. In order to become a
member of Consumers Credit Union, you need
membership of the Consumers Cooperative
Association (one-time fee of 5). In addition,
you dont have to live, work or study in a
specific location, in order to become a member.
Digital Federal Credit Union (DFCU)
  • Digital Federal credit union is a
    Massachusetts-based credit union and functions on
    equity crowdfunding where the members can invest
    in community businesses and can be used by both
    ambitious investors and entrepreneurs looking to
    raise capital.

Their financial tools include checking and
savings accounts, credit cards, two business
checking accounts, several business savings
accounts, including certificate accounts, money
market accounts, and IRA options for employees,
and two no-fee business credit card options. The
business loan programs include business lines of
credit up to 3 million, term loans up to 3
million, commercial mortgages up to 5 million
and commercial construction mortgages up to 5
million. Their best financial tool is the free
DFCU business checking account, which requires no
minimum balance and no maintenance fee, as well
as the Premier Business Checking account, which
is interest bearing. In addition, both of these
Digital Federal Credit Union business accounts
include free mobile and online banking. In
order to become a member, youll need to live,
work, or study in a DFCU eligible community, or
work for a DFCU eligible company or be related to
a current DFCU member.
Boeing Employees Credit Union (BECU)
  • Boeing Employees Credit Union (BEC) is a
    Washington-based credit union and everyone from
    Washington State, Oregon and Idaho counties, and
    selected eligible associations are eligible to
    become a member.

In addition to their financial services, BECU
offers a strong business-banking program. The
features include two different business checking
accounts, free electronic debits and credits,
free online banking and bill pay, free
e-statements, remote check deposits, no-fee
savings account, Money Market accounts,
fixed-rate CDs, and investment and retirement
accounts. Their business loans programs include
term loans up to 250,000, business vehicle loans
with APRs as low as 3.39 for new vehicles or
4.14 for used vehicles, secured and unsecured
credit lines, commercial real estate loans for up
to 15 million and payroll and merchant services
for small business owners.
Credit Unions Business Loans
  • Like traditional banks and alternative lenders,
    credit unions also provide a wide range of
    business loan options.Heres an overview of some
    of the business loan programs offered by credit

Business Lines Of Credit
Startup Loans
Business Credit Cards
Installment Loan
Small Business Administration (SBA) Loans
Commercial Mortgages
Small Business Administration (SBA) Loans
Small Business Administration loans are the most
popular funding option for businesses with a
strong credit history. SBA loans low rates and
favorable terms. The SBA guarantees up to 85 of
the loan amount, making it less risky for credit
unions and other lenders to approve money to
small businesses. The only downside of SBA
loans is the lengthy process. Since SBA loans are
competitive, a strong business and personal
credit history can get you quick approval on
these loans. SBA also offers several loan
programs including standard 7(a) program up to 5
million, 504 program, SBA Caplines, Export Loans,
Microloan, and Disaster loan program.
Installment Loan
Credit Unions provide a specific lump sum of
money where regular payments are made on a
scheduled basis, monthly or daily basis.
Mortgages and auto loans are the common types of
installment loans. These loans are also called
term loans with varied rates and terms from
50,000 or higher,. The interest rates on
installment loans are determined based on the
borrowers creditworthiness. These loans can he
used for larger purchases.
Business Lines Of Credit
A business line of credit is another business
loan option offer by credit unions and it works
like a credit card. It allows borrowers with a
given credit limit and multiple draws can be made
on the account by the borrower a needed up to the
principal amount. A business line of credit can
be used for many business purposes such as for
emergency expenses, manage cash flow during slow
seasons, purchase inventory, or pay for other
business expenses. The Interest rates are
little higher on credit lines as compared to
installment loans. The borrower will only pay
interest on the amount used. The qualification
criteria and credit requirements are less strict
for a credit line. Borrowers with poor credit
score might have to put up some assets as
collateral to use the line of credit.
Startup Loans
Getting a business loan for startups is
challenging and extremely difficult. Startups are
considered risky, and without solid financial
documentation and no credit history presents an
even higher risk. But it doesnt mean there are
no options for startups. Credit unions provide
startup loans to small businesses. There are
several SBA loans as well for qualified startups
while some lenders have their own programs for
new businesses. Using a personal loan via credit
union can help fund startup projects and business
Business Credit Cards
Many qualified businesses can also secure funding
via business credit cards. It works just like a
personal credit card, and can be used for
business expenses. These cards carry a maximum
credit limit where borrowers can spend up to this
maximum. The interest rates is charged on the
balance of current charges, and not against the
entire credit line. The borrowers have to made
monthly payments with interest. Once the balance
is paid off, the funds will be available again
for use by the borrower.
Commercial Mortgages
Getting a commercial mortgage can help businesses
purchase, renovate or refinance an existing
commercial real estate through a credit union.
Commercial loans offer competitive interest rates
and down payment requirements. You can also
secure 504 or 7(a) SBA loans for this purpose.
The qualification criteria along with interest
Rates and repayment terms can vary by lender.
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