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
7.60%
BECU offers equipment financing loans worth up to $250,000, with terms up to seven years and interest rates ranging from 7.60% to 13.05%. For those interested in taking them up on their offer, the credit union is free to join and, if you’re not able to visit a financial center in person, you’ll have the option to apply over the phone.
But you’ll have to put down at least a 20% down payment to get an equipment loan with BECU.
Nearly any business owner can become a member of BECU by joining their local Credit Union Service Organization (CUSO). Otherwise, you must live in an eligible community within the Pacific Northwest or South Carolina, work for the Boeing Company or one of its affiliates or become a member of one of BECU’s other partner organizations.
However, business owners in a few specific industries are excluded from becoming members. You can’t become a member of BECU if your company promotes internet gambling, is a marijuana dispensary or provides certain money services, such as payday loans or check cashing.
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
8.75% Based on the current prime rate of 7.50% + 1.25% added by USF Federal Credit Union
If you don’t have collateral that can be used to back your business loan, consider an unsecured business loan from USF Federal Credit Union. Loan amounts go up to $100,000 with five-year repayment terms, and rates start at just 8.75% Based on the current prime rate of 7.50%% + 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.
Anyone can become a member of the USF Federal Credit Union by joining the American Consumer Council, where membership is free. However, you can also become a member if you live in certain communities in Florida, are affiliated with the University of South Florida, or work for certain Florida-based employers.
Commercial real estate loans
$0
Nationwide - online only
Not disclosed
If you’re looking for a commercial loan from a credit union, Alliant Credit Union might be a good fit. The credit union is free to join with few membership requirements and it’s fully digital, which means its services are available nationwide. As far as its business products are concerned, Alliant specializes in commercial real estate transactions in the multifamily, industrial, retail, self-storage and hospitality industries, among others.
At the same time, Alliant targets commercial transactions ranging from $7,000,000 – $35,000,000, so if your transaction falls outside that range, you may need to look for another lender. Additionally, this credit union doesn’t offer any other types of small business loans.
You can become a member if you live or work in certain communities near Alliant’s corporate headquarters in Chicago, if you’re a current or retired employee of one of Alliant’s partner organizations or if you’re related to a current member of the credit union.
If you don’t meet any of the above criteria, anyone with a Social Security number or unexpired ITIN can become a member of Alliant Credit Union by becoming an Alliant Credit Union Foundation Digital Inclusion Advocate.
While there isn’t technically a membership fee, there is a $5 fee to become a digital inclusion advocate, which means if you take that route to becoming a member it will cost $5.
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
Formerly known as Bethpage Credit Union, FourLeaf Federal Credit Union is located in the New York metro area, but offers virtual services and a robust ATM network to accommodate those who live elsewhere. Membership is open to anyone who can invest a few dollars in a savings account. As far as its business auto loans are concerned, the credit union offers competitive rates and a variety of loan terms, ranging up to seven years.
Yet, there is a limited amount of information about FourLeaf Federal Credit Union’s business loans available online. The credit union asks you to contact the business lending team directly for information about its commercial financing products. Plus, if you want to visit a FourLeaf Federal Credit Union to do your banking, you’ll have to live within proximity to Long Island, New York, where most of the brick-and-mortar branches are located.
Membership at FourLeaf Federal Credit Union is open to anyone who can afford to invest at least $5 into a savings account (also called a share account) with the organization.
SBA loans, commercial real estate loans, asset-based lending
$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
Has branch locations in California, Idaho and Texas. But also provides a virtual branch that lets you bank nationwide
10.50% variable, 12.50% fixed Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
Loans offered by the Small Business Association (SBA) are popular among business owners because they offer more flexible qualifying requirements than traditional small business loans. As an SBA-preferred lender, Technology Credit Union is authorized to approve SBA loans without sending them to the SBA itself, which can lead to much faster processing times than would usually be expected from a government-backed loan.
Anyone can become a member of Technology Credit Union by joining the Financial Fitness Association ($8/year membership fee). Otherwise, you must work for certain technology companies or reside within certain countries in California or Idaho.
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.
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 | Cons |
|---|---|
Reduced fees Higher savings rates Lower loan rates | Must be a member to apply for loan products Can require personal guarantee Can come with stricter financial requirements |
If a credit union business loan is not the right choice for you, here are some alternative options:
