Credit unions can be a great choice for small-business loans. They often have lower interest rates than banks and offer friendly, personal service. But getting approved can be difficult.
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What is a credit union?
Credit unions are not-for-profit cooperatives owned by their members. They offer many of the same services as banks. But, unlike banks, profits are returned to members through dividends, lower business loan rates and other perks.
How to join a credit union
To join a credit union, you’ll need to apply for membership. Approval may require living or working in a certain area or belonging to a specific group. For example, Navy Federal Credit Union is only open to military members, veterans, Department of Defense employees and their families.
What types of business loans can you get from a credit union?
Like banks, credit unions can offer lots of business loan options. Here are some popular ones you might see:
- Term loan. A lump sum of cash you repay over time, with interest. These are best for making long-term investments in your business, like buying equipment or inventory, renovating your space or hiring staff.
- Line of credit. Access to an amount of money you can draw on as needed. You only pay interest on what you use. These are best for short-term needs, like a temporary dip in cash flow or unexpected expenses.
- Business auto loan. Financing for buying used or new vehicles for your business. These are best if you need a work car, van, truck or other vehicle.
- SBA loan. Government-backed loans with flexible terms and competitive rates. These are best for covering working capital, refinancing debt or buying an existing business.
- Commercial real estate loan. These are best for buying, refinancing or improving a property that’s used for your business. They often have flexible terms and low interest rates.
Pros and cons of credit union business loans
Pros
- Low interest rates and fees. Credit unions usually have lower interest rates than banks.
- Support for underserved borrowers. About 11% of credit unions are community development financial institutions (CDFIs). These focus on helping underserved communities.
- Personalized customer service. Due to their smaller size and member-first philosophy, credit unions tend to provide fast and personalized customer support.
- Tailored services. Along with business loans, credit unions may offer other financial products tailored to its members. For example, Navy Federal Credit Union offers VA loans for military veterans, while SchoolsFirst Federal Credit Unions has a school employee auto loan that lets members skip two payments during the summer months.
Cons
- Membership required. You have to be a member before you apply for a business loan.
- Strict requirements You may need good credit, strong revenue and at least two years in business.
- More limited than banks. Credit unions often have fewer loan choices and locations than banks.
The best credit unions for business loans
To find a credit union in your area, use the National Credit Union Administration’s locator tool.
Here are the five biggest credit unions by membership size that offer business loans.
Navy Federal Credit Union
- Business loans available: Term loans, real estate loans, vehicle loans and lines of credit.
- Branches: 371.
- Members: 15 million.
Navy Federal Credit Union is the largest federally insured credit union by members and assets, according to the most recent data from the National Credit Union Administration. Its business loans don’t have prepayment penalties, but you’ll need at least $100,000 in annual sales to qualify for its term loan or line of credit.
To apply for a business loan, you’ll need to become a business member on top of being a Navy Federal Credit Union member.
Membership eligibility
- To join the Navy Federal Credit Union, you or one of your family members must have ties to the armed forces or Department of Defense. Family members include your spouse, siblings, parents, children, grandparents and grandchildren.
- To become a business member, you must have a Navy Federal Credit Union account in good standing, apply through your personal account and submit documents like your federal tax ID number.
Learn more about Navy Federal business loans.
Boeing Employees' Credit Union
- Business loans available: Equipment financing, business vehicle loans and lines of credit.
- Branches: 67.
- Members: 1.5 million.
Boeing Employees' Credit Union (BECU) is the second-largest credit union that offers business loans in the United States. It’s headquartered in Tukwila, Washington. It has over 60 locations across the state, as well as two in South Carolina.
Membership eligibility
- Anyone who lives, works, worships or goes to school in Washington or parts of Oregon and Idaho. Boeing, BECU or credit union workers and volunteers may also qualify, as can University of Washington and Washington State University alumni.
- For businesses, more than half of owners or employees must also live, work, worship or go to school in those same areas to qualify, or the business must have an office there. A business can also qualify if a majority of its owners or employees are members of a specific group or organization, like the University of Washington Alumni Association. Internet gambling, marijuana and money service businesses can’t join.
America First Federal Credit Union
- Business loans available: SBA loans, business vehicle loans, equipment, unsecured term loans, commercial real estate loans and lines of credit.
- Branches: 113.
- Members: 1.5 million.
Based in Ogden, Utah, America First Federal Credit Union has over $22 billion in assets and more than 1 million members. It's also the third-largest credit union offering small-business loans, and is an active SBA 7(a) lender.
Membership eligibility
- You must live, work, worship, volunteer or go to school in parts of Utah, Nevada, Arizona, Idaho, Oregon, New Mexico or California to join. You can also join if you work for America First Federal Credit Union, if you work in Utah’s food industry or if you have family members that qualify for membership.
Mountain America Credit Union
- Business loans available: SBA loans, equipment financing, lines of credit, commercial real estate loans, construction loans, acquisition loans and franchise loans.
- Branches: 103.
- Members: 1.4 million.
Mountain View Credit Union was the most active credit union SBA 7(a) lender in fiscal year 2025 (which ended Sept. 30). It has branches in Arizona, Idaho, Montana, Nevada and Utah.
Membership eligibility:
- To join, you must live in certain Utah counties or work or volunteer for an approved employer group or affiliated association. You may also join if a family member or someone you live with is already a member.
» MORE: Best SBA lenders
Suncoast Credit Union
- Business loans available: Lines of credit, commercial real estate loans, business vehicle loans, equipment loans and microloans.
- Branches: 78.
- Members: 1.3 million.
Based in Tampa, Florida, Suncoast Credit Union is the largest in the state. It offers lots of business services, like loans, insurance and bank accounts.
Membership eligibility
- Anyone who lives, works, goes to school or worships in select Florida counties.
How to get a credit union business loan
Applying for a business loan from a credit union is similar to getting one from a bank. Here are the steps:
1. Understand how much money you need
Determine how much money your business needs, what you’re going to use it for and which type of loan is best for your business.
🤓 Nerdy Tip
Use NerdWallet’s business loan calculator to figure out how much debt you can afford. 2. Check loan requirements
Like other lenders, credit unions usually look at your credit score, annual revenue and how long you’ve been in business. They may also review your cash flow, collateral and sales projections.
Review your information ahead of time so you know where you stand. Keep in mind that credit unions often have stricter business loan requirements than online or alternative lenders.
3. Compare credit unions
When comparing credit unions, make sure you qualify as a member first. Assuming you qualify for more than one, your next step will be to compare business loan options, interest rates, repayment terms and fees. Also consider what else the credit union has to offer if you’re looking for more than just a business loan.
4. Become a member
You must be a member before you can apply for a business loan.
Joining usually involves filling out an application with basic details about you and your business. You’ll also need to show proof that you meet membership requirements, such as your address or employer.
5. Apply for the loan
You may be able to apply online or over the phone, but some will make you visit a branch location.
Be ready to provide:
- Basic business details (name, address and tax ID number).
- A business plan.
- Business and personal bank statements and tax returns.
- Financial statements (e.g. profit and loss statement, cash flow statement).
- Collateral information, if needed.
- Details about the business owners, including names, Social Security numbers and addresses.
6. Review and receive your funds
After you apply, it may take a few days or weeks to get approved. If approved, you’ll get a business loan agreement to review. Read it carefully and ask questions before signing.
Once you sign and return the agreement, your credit union will send the funds, typically by direct deposit.
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- 1. National Credit Union Administration. Credit Union Custom Query. Accessed Oct 31, 2025.
