Best Credit Union Business Loans
If you prefer to get funding from a nonprofit, consider these lenders Editorial note: If you choose to get business loan offers through LendingTree, you may see results from banks and private lenders.
| Lender | Best for… | Business lending products offered | Membership fee | Areas served | Min. interest rate | |
|---|---|---|---|---|---|---|
 | Equipment financing | Lines of credit, term loans/equipment financing, auto loans | $0 | Has branches in the Pacific Northwest and South Carolina, but has ATMs and partner credit unions nationwide | ||
 | Unsecured term loans | Commercial real estate loans, commercial auto loans, unsecured term loans, lines of credit | $0, but you’ll need at least $5 in a savings account | Has branch locations across Tampa Bay and in central Florida, but is part of the Co-op Network, which provides access to shared branches across the United States | ||
 | Commercial real estate Loans | Commercial real estate loans | $0, but you may need to donate $5 to become a Digital Advocate | Nationwide – online only | Not disclosed | |
 | SBA loans | SBA loans, commercial real estate loans, asset-based loans | $0, but you’ll need at least $25 in a savings account | Has branch locations in California, Idaho and Texas. But also provides a virtual branch that lets you bank nationwide | variable, fixed Some borrowers may qualify for lower rates. Based on the current prime rate of + a rate maximum set by the SBA. | |
 | Commercial auto loans | Term loans, lines of credit, auto loans, commercial real estate loans | $0, but you’ll need at least $5 in a savings account | Has New York metro area branches, but its ATM network and virtual services expand coverage nationwide | Not disclosed |
Best credit union business loan lenders: More details
Best for: Equipment financing –
Best for: Unsecured term loans –
Pros
- Very transparent about its loan terms
- Low loan fees
- Part of the Co-op Network, which means members can utilize shared branches across the country
Cons
- Physical branches only located in Florida
- Must make a $5 deposit into a savings account to join
Based on the current prime rate of 7.25%% + 1.25% added by USF Federal Credit Union , which is competitive with what you can receive from many traditional lenders. Borrowing does come with a loan fee, but it’s fairly nominal at $150 for amounts up to $50,000 and $250 for larger loans.
Best for: Commercial real estate loans –
Best for: SBA loans –
Business loan products offered: SBA loans, commercial real estate loans, asset-based lending
Membership fee: $0, but you’ll need at least $25 in a savings account and some applicants may need an $8/year membership to the Financial Fitness Association
Areas served: Has branch locations in California, Idaho and Texas. But also provides a virtual branch that lets you bank nationwide
Maximum interest rate for SBA loans: variable, fixed Some borrowers may qualify for lower rates. Based on the current prime rate of 7.25% + a rate maximum set by the SBA.
Pros
- Offers a virtual branch to serve those who don’t live near a brick-and-mortar financial center
- Is an SBA preferred lender
- Also offers business bank accounts
Cons
- Must deposit $25 in a savings account to join
- Physical branches are only located in California, Idaho and Texas
- Doesn’t offer unsecured loans
Best for: Commercial auto loans –
What is a credit union?
Credit unions are member-owned, not-for-profit financial institutions. A major plus of being a not-for-profit is credit union business loans can come with lower rates for members.
Though credit unions offer many similar products and services to traditional brick-and-mortar banks, credit unions can come with membership requirements based on occupation, industry, location or organizational affiliation, among others.
Pros and cons of credit union business loans
Credit unions can be a solid choice for some small businesses looking for small business loans. Answering the question, “Should you get a credit union business loan?” depends on the pros and cons.
PROS
- Reduced fees
- Higher savings rates
- Lower loan rates
CONS
- Must be a member to apply for loan products
- Can require personal guarantee
- Can come with stricter financial requirements
How to choose a credit union
If you think joining a credit union is right for you, keep the following criteria in mind as you explore different options:
- Eligibility. Make sure you meet the credit union’s eligibility requirements. While we chose credit unions that were open to anyone, some credit unions limit their membership eligibility by geographic region.
- Products offered. Consider the small business financing products offered by the credit union to ensure they meet your needs.
- Rates and fees. Gather information about the rates and fees for any loan products you’re interested in. Sometimes, you may be able to find this information online, but in other cases, you may have to contact the credit union directly.
- Service availability. If you don’t live close to your chosen credit union, consider its online service offerings. If you do, think about branch and ATM availability.
- Insurance coverage. Protect your money by ensuring it is insured by the National Credit Union Administration (NCUA). Like the FDIC, NCUA insures accounts on up to $250,000 per depositor.
How to get a credit union business loan
Applying for a business loan with a credit union is similar to traditional banks and online lenders. However, at a credit union there are additional requirements to consider:
1. Meet the membership requirements
A credit union will require you to be a member in order to apply for its business loans. The membership requirements may be based on geography, employment industry or organizational affiliation.
2. Provide information about your business
When applying for a business loan at a credit union, you will need to provide specific information about your small business. Each lender may have its own qualifications but the most common requirements included are business tax returns, credit score, proof of annual revenue and the length of time your business has been operating.
3. Explain the funding purpose
During the application process, you’ll likely be asked to determine the type of funding you’re interested in, such as an equipment loan or line of credit. You will also be asked to provide information on how you plan to use the funds and will likely need to include the amount you want to borrow.
Alternatives to credit union business loans
If a credit union business loan is not the right choice for you, here are some alternative options:
-
Traditional bank loans
If you don’t want to go through the hassle of joining a credit union, you can always opt for a traditional bank loan. Just be aware that these loans are usually the best fit for established businesses that can meet the bank’s stricter qualifying criteria. -
Online lenders
Online lenders typically offer more flexible qualifying requirements than traditional banks, but in exchange, you may find yourself paying a higher interest rate.
Our methodology: How we chose the best credit union business loans
We reviewed more than 30 credit unions to determine the overall best five credit union business lenders.
Credit unions that made the list needed to have these features:
- Boasts a nationwide presence: Since LendingTree has a wide readership, we focused on credit unions that are available nationwide. However, if you prefer to support your local community, there are plenty of smaller, local credit unions available across the country.
- Offers business loans with competitive terms: We focused on offerings with low interest rates and few fees.
- Imposes relatively simple membership criteria: We looked for credit unions that let everyone join.
- Charges low, if any, membership fees: We prioritized credit unions with low fees, if they charge any fees at all.
- Functions as a credit union: For this article, we focused on credit unions rather than banks or online lenders.
- Provides NCUA insurance coverage: We only looked at credit unions that offer the standard NCUA insurance coverage of $250,000 per depositor.