8 Best Credit Unions For Small Businesses in 2023 [Ranked & Reviewed]

The best credit unions have competitive rates, low minimum balance requirements and no monthly fees.

The following are some of the best credit unions for small businesses.

 

 

What Are The Best Credit Unions For Small Businesses?

Let’s take a look at the best credit unions for small businesses.

1. America First Credit Union

America First Credit Union is a member-owned financial institution that serves the needs of people who live and work in the communities we serve. We have over 300,000 members in Ohio, Kentucky and Indiana.

Best for small businesses that have low to medium volume sales

 America First Credit Union. Best for small businesses that have low to medium volume sales. America First Credit Union is a great option for businesses with fewer than 50 employees and low to medium volume sales.

It’s a good choice for startups and growing businesses that need access to capital but don’t want to deal with the paperwork or fees associated with a bank loan. America First offers free business checking accounts, free online banking and free bill pay services.

The credit union offers several types of loans that can help you get started or grow your business:

• Small business loans up to $50,000
• Equipment financing up to $50,000
• Construction loans up to $500,000

2. Navy Federal Credit Union

 Navy Federal Credit Union is a member-owned financial institution that provides savings and loans to members of the military and their families. Navy Federal Credit Union serves more than 6 million members in all 50 states, Washington, DC, Puerto Rico and Guam.

Navy Federal has been named one of America’s Best Companies to Work For by FORTUNE magazine for nine consecutive years and has been recognized by The Washington Post as one of the Top Places to Work in the Washington area.

Navy Federal is committed to making a difference in our communities through our support of causes like Children’s Miracle Network Hospitals, Make-A-Wish®, March of Dimes, Operation Gratitude and Red Cross Disaster Relief. Through these efforts we have donated more than $1 billion since 2000.

Best for being a credit union that cares about military vets

 Navy Federal Credit Union. Best for being a credit union that cares about military vets. If you’re in the military, or family of someone who is, you may be eligible for membership at Navy Federal Credit Union (NFCU).

That’s because NFCU was created by the US Naval Academy Alumni Association as a way to help service members, veterans and their families.

NFCU has branches all over the country and offers great savings rates on loans and mortgages. It also offers special rates on car loans, even if you don’t have spotless credit. The other thing that makes NFCU stand out is its commitment to serving military members and veterans.

Key Features

1. No fees (except for ATM transactions)
2. No minimum balance
3. Free online banking and bill pay
4. No minimum loan amount on personal loans (up to $50,000)

3. Digital Federal Credit Union

 Digital Federal Credit Union is a financial institution that serves the greater Los Angeles area. It’s a credit union, which means it’s owned by its members and is not-for-profit.

The credit union offers a variety of banking services, including checking accounts, savings accounts, CDs and IRAs. Digital Federal Credit Union also offers investment services through its affiliated broker-dealer, Digital Securities.

Digital Federal Credit Union was founded in 1957 as an employee mutual benefit association. It became a federally insured credit union in 1970 and opened its first branch location in 2002. Today, Digital Federal Credit Union has more than $430 million in assets and more than 55,000 members nationwide.

The digital age has changed how people work, play and live their lives — and it’s changed how we bank too! That’s why we offer online banking with no hidden fees or minimum balance requirements so you can easily manage your finances anytime anywhere 24/7/365 on any device including mobile phones or tablets.

Digital Federal Credit Union offers competitive rates on personal loans for auto purchases or refinances as well as home improvement projects. If you’re looking for a personal loan with low interest rates then talk to one of our loan officers today!

Best for controlling the amount of money your organization spends

If you’re looking for a credit union that comes with a no-fee checking account and low-cost loans, Digital Federal Credit Union is an excellent choice. The credit union does not charge monthly service fees or maintenance fees on its checking accounts and offers some of the lowest loan rates we saw in our survey.

Digital Federal also has a mobile app that makes it easy to transfer money between accounts and deposit checks from your smartphone or tablet.

Digital Federal Credit Union has branches in California, Colorado, Nevada and Washington state, but you don’t have to live in one of those areas to join. Membership eligibility requirements include working at a participating company or being related to someone who does; being active duty military or retired military; or having family members who are eligible for membership (such as immediate family members).

Key Features

24-hour customer service – You can contact someone at any time with questions or concerns about your account, or if you need to make a transaction after business hours. The phone number is (855) 765-2600 or you can reach them by email at [email protected]

Debit cards with no annual fee  – Digital Federal Credit Union offers debit cards with no annual fee for all members, regardless of whether you have a checking account or not. You can also get a free ATM card if you need one for traveling purposes.

The ATM network includes over 24,000 locations worldwide, so there should be an ATM close by wherever you go!

4. Blue Federal Credit Union

 Blue Federal Credit Union is a full-service financial institution with $3.8 billion in assets and more than 100,000 members. 

Best for getting approved through a simple application process

Blue Federal Credit Union is one of the best credit unions for getting approved for a loan, says NerdWallet. It’s easy to apply and get approved with this credit union, which makes it a great choice for people with bad credit scores.

The average APR on loans at Blue Federal Credit Union is 7.29%, according to NerdWallet’s study of 1,500 banks and credit unions across the country. The national average APR on a personal loan from a bank or credit union is 13%.

5. First Tech Credit Union

 First Tech Credit Union is a financial cooperative that has been serving the needs of the community since 1953. The credit union was founded by a group of employees from the Southern California Edison Company (SCE) who wanted to create a better way to bank.

First Tech Credit Union has grown over the years and now serves more than 100,000 members throughout California, Nevada, Arizona and Oregon. First Tech Credit Union is one of the largest credit unions in California with assets of $1.8 billion as of December 31, 2016.

The organization has more than 150 employees who are committed to providing our members with high-quality financial services at competitive rates and fees.

Best for having a business account with no monthly charges

If you’re just starting out and don’t have a lot of money to work with, First Tech Credit Union is the best account for you.

It has no monthly fees and requires no minimum balance to open an account. You can even apply online from your couch or bed.

You can also get discounts on other products and services, such as car insurance. If you drive less than 10,000 miles per year (or don’t drive at all), there are special rates available for that too. First Tech also offers free checking accounts with no minimum balance requirements and no monthly service charges — ever. Plus, you can apply online in just minutes!

Key Features

• Checking Accounts
• Savings Accounts
• Certificates of Deposit (CDs)
• Money Market Accounts
• Personal Loans

6. CreditUnion1

 Credit Union1 is an online credit union offering personal and business accounts.

You can do almost anything online here at Credit Union1! You can apply for loans or open new accounts; check your balance; transfer money between accounts; pay bills; invest in CDs or mutual funds; get a home or auto loan; or even buy stock shares in your favorite company!

Best for helping different types of businesses achieve their goals

 CreditUnion1 is the best business credit card for any type of business owner. If you’re looking for a business credit card that can help you achieve your goals, CreditUnion1 is the card for you. As a member-owned financial institution, CreditUnion1 offers a range of products and services designed specifically for small businesses.

CreditUnion1’s Business Cash Rewards Visa® Card comes with no annual fee and no foreign transaction fees. It also has no balance transfer fee and offers 1% cash back on every purchase — 2% cash back on gas purchases, 3% cash back on restaurant purchases and 4% cash back on Uber rides.

That means when it comes to building your business’s credit history or earning rewards, this card has everything you need. If you’re looking for high rewards rates or other benefits like travel insurance, then keep reading!

Key Features

– Credit Union membership is open to anyone who lives, works, worships or attends school in the state of Michigan.

– Credit Union membership is also available to immediate family members (spouse or domestic partner; parent, child, grandparent, sibling or step-parent/step-child; aunt and uncle; first cousins).

– Members must be at least 18 years old.

– Members must have a valid Social Security number (SSN). If your SSN is not registered to you or if you have multiple SSN’s you may use an alternative identification number found on your credit union membership card.

– You may apply for membership any time except when your application is under review by the credit committee.

7. Consumers Credit Union

 Consumers Credit Union is a great financial institution. They are the best because they have a great staff, great services and great rates.

The staff of consumers credit union is very friendly and helpful. They will answer any questions you have about your account or other services that they offer.

They are always willing to help you in any way possible. The staff members are always smiling and happy to see you when you come into the branch, which makes the experience even better!

Consumers Credit Union offers many different financial services such as checking accounts, savings accounts, CDs (certificates of deposit), debit cards, credit cards and more! They also offer online banking so that you can easily manage your money from anywhere at anytime!

This is another reason why I love Consumers Credit Union because it helps me stay on top of my finances!

Best for having a no-nonsense, no-monthly fee account

Consumers Credit Union is not a typical credit union. It’s one of the biggest in the country and has more than $17 billion in assets. But it still has that small-town feel.

It has only four branches in Arizona and California, so it’s not easy to get to if you don’t live near one of them. But if you do live near one, you’ll find lots of perks — from free checking accounts with no monthly fees to a high-yield savings account that pays 2% interest on balances up to $5,000 (1% above average).

You can also earn rewards on purchases made with your Visa or MasterCard through Consumers’ membership in Visa Signature, which offers benefits like travel protections and rental car insurance coverage when you use the card at participating locations overseas.

Plus, there’s no minimum balance required and ATM withdrawals are free at any ATM nationwide that accepts Visa debit cards (note: ATM withdrawal fees may apply at other banks’ ATMs).

Key Features

1. Savings account – A savings account is similar to a CD but with no maturity date. You can withdraw your funds without penalty at any time.
2. Money market account – A money market account offers higher interest rates than regular savings accounts and allows you to write checks against your balance (unlike a standard savings account).
3. These accounts are FDIC-insured up to $250,000 per depositor per bank.
4. CDs – CDs are fixed-rate investments that typically have higher interest rates than other types of savings accounts or money market accounts. The longer the term you choose for your CD, the more interest you’ll earn over time.

What are Credit Unions for Small Businesses?

 What are Credit Unions for Small Businesses?

Credit unions are financial cooperatives that provide savings and checking accounts, loans and other financial services to members. They were originally created by employees at a company, but they have since expanded their membership to anyone who lives or works in a certain area.

They are typically non-profit organizations and have lower fees than many banks and credit card companies. While there are many advantages to joining a credit union, there are some downsides as well.

Why Join a Credit Union?

There are several reasons why you should consider joining a credit union. The first is that they have lower fees than most banks and credit card companies.

A study conducted by the Center for Responsible Lending found that checking accounts at credit unions cost 19% less than those offered by banks on average.

Credit unions also tend to have fewer fees for overdrafts and debit card usage than commercial banks do. Another advantage of joining a credit union is that they often offer better rates on loans than traditional banks do.

The average interest rate on auto loans at credit unions is 2% lower than it is at commercial lenders, which could save you thousands of dollars over time if you plan on financing an automobile purchase or refinancing an existing vehicle loan through them.

Features to look for when choosing the top credit union business account

 When choosing the top credit union business account, there are many factors to consider. The following list will help you narrow down your options and find the right fit for your business.

Online banking

Online banking is one of the most important features to look for in a top credit union business account. With online access, you can check your account balance and transfer funds from anywhere in the world. You can also set up automatic payments and deposits to make managing your money easier.

Automatic deposits

Automatic deposits are a great way for businesses to save money on payroll expenses by depositing funds directly into employees’ accounts instead of mailing checks or paying them in cash each payday. Automatic deposits can also be used as a way to pay vendors such as suppliers or subcontractors.

This eliminates the need for businesses to write checks or carry large amounts of cash on hand at all times.

Mobile app access

Mobile apps allow you to access your account information on-the-go without having to log into your computer or visit an ATM machine. They’re also convenient because they don’t require an internet connection; thus, if there’s no Wi-Fi available where you’re traveling, you can still access your accounts just fine through these apps without any issues whatsoever!

Expenses involved with the account

 The following are expenses that can be deducted from the account:

• Dividends: The dividends you receive from your investments are not taxed on your income tax return.
• However, if you sell a stock or mutual fund and make a profit, then the difference between what you paid for it and what you sold it for is considered capital gains and is taxed at your marginal rate.
• Interest: Interest from your checking or savings accounts is not taxable as long as it is less than $10,000 in a given year.
• If it’s more than $10,000, then the interest over $10,000 is considered to be taxable income.
• Capital Gains: Capital gains are profits made when selling stocks or mutual funds at a higher price than what was purchased at. Capital gains taxes are determined by subtracting your basis (the original cost of the investment) from the amount of gain (what you sold it for minus what you paid for it).
• For example, if an investor bought 100 shares of ABC stock for $1 per share and later sold them for $2 per share, then they would have a $1 capital gain per share ($200 total). 

Business savings accounts

 A business savings account is a type of deposit account that businesses use to keep their funds safe and accessible. Businesses can choose from several types of savings accounts, including traditional savings accounts, money market accounts and certificates of deposit (CDs).

Savings Accounts

Savings accounts are among the simplest types of bank accounts available to businesses. They offer low interest rates and limited access to funds.

A business can use a savings account as a place to store funds until they’re needed for expenses or investments.

Money Market Accounts

Money market accounts are similar to savings accounts in that they both offer low interest rates and limited access to funds. However, money market accounts offer higher interest rates than traditional savings accounts and have more restrictions on when money can be withdrawn from the account.

Money market accounts are also FDIC-insured up to $250,000 per person per institution though some institutions may offer higher limits than others.

Money market savings accounts

 Money market savings accounts are savings accounts that allow you to earn higher interest rates than traditional savings accounts. This is because they have some of the same characteristics as checking accounts.

For example, they do not have a minimum balance requirement and they allow you to write checks against the account.

Money markets also offer check-writing privileges and may include online banking services. As a result, they tend to be more liquid than other savings vehicles such as CDs or money market mutual funds.

The balance limits on these accounts vary depending on the institution and are usually between $250 and $1 million.

The interest rates on money market accounts are often lower than those offered by traditional savings accounts because their liquidity creates a greater risk for banks if interest rates go up significantly or if there is an unexpected spike in withdrawals from these types of accounts.

 Small business loans

The definition of a small business loan varies from lender to lender, but it’s usually considered anything under $1 million. Small businesses often have trouble finding financial support from banks because they don’t have the track record or collateral that larger companies do.

However, there are alternative lenders that specialize in helping startups and small businesses get the capital they need to grow.

Small business financing options

There are many different types of small business funding options available to entrepreneurs. Here are some of the most popular:

Small business loans: These come in many forms and can include bank loans, credit union loans, SBA loans and more. They’re best used for long-term financing needs like purchasing equipment or real estate.

In some cases, you may be able to borrow up to $500,000 or more depending on your credit score and the type of loan you qualify for.

Equipment financing: You may be able to get a loan or lease your new equipment without paying upfront by using equipment financing.

This type of financing is available from banks and other lenders who provide equipment leasing as part of their services to customers with good credit ratings. Equipment leasing can help you avoid paying large amounts of cash upfront for new machinery.

Member discounts

 Members get exclusive discounts and benefits. To become a member, simply visit our website and select the membership level that best suits your needs.

As a member, you’ll enjoy unlimited admission, discounts on events and classes, invitations to special events and more!

Unlimited Admission: Enjoy unlimited visits to The Met Fifth Avenue during regular museum hours at no additional charge during the duration of your membership.

Discounts on Events & Classes: Enjoy discounts on all museum programs and lectures by joining one of our Friends groups or becoming a Member.

Members save up to 40% off the cost of tickets for special exhibitions; up to 50% off M Bar items; and up to 35% off tickets for select theater performances at The Met Opera.

Overdraft fees

 Overdraft fees are a big moneymaker for banks. Overdraft fees are a big moneymaker for banks. Consumers paid $29 billion in overdraft and insufficient fund (NSF) fees in 2017, according to Moebs Services, an economic research firm that tracks consumer credit trends. That’s up from $28 billion the year before.

These penalties can be expensive. For example, Bank of America charges $33 per transaction when you overdraw your checking account by even one penny. If you keep doing it, you could be charged hundreds of dollars in fees each month.

The Consumer Financial Protection Bureau estimates that U.S. banks collected $15 billion in overdraft fees alone in 2016. That’s more than all other bank fees combined, including ATM withdrawals and deposits at ATMs outside the bank’s network; foreign currency exchanges; paper statements; safe deposit box rentals; wire transfers; and check printing services.

Online banking security

 Online banking security is a big issue for many people. Whether you’re a small business owner or a homeowner, you need to know how to protect your money and information.

And you’ll be glad to know that the level of security online banking offers has been increasing over the years.

Here are some tips for keeping your money safe when using online banking:

• Use complex passwords
• Make sure your computer is secure
• Don’t share passwords with others
• Don’t click links in emails from unknown sources
• Don’t open attachments in emails from unknown sources

Credit unions vs traditional banks

 Credit unions and traditional banks are both financial institutions that exist to help customers manage their money. But there are some differences between them, which can make one a better fit for your needs than the other.

Credit unions vs traditional banks: Which should you join?

Credit unions and traditional banks have many similarities, but they also have significant differences. Credit unions tend to be smaller and more community-focused, while traditional banks tend to offer more products and services, like investment accounts and insurance policies.

Here are some of the key characteristics of each type of institution:

Size: Credit unions tend to be small and local, with just one branch or location where members can deposit money and access services like loans. Traditional banks usually have hundreds of branches across the country — or even around the world — making it easier for members to access their money in person or online.

Efficiency: Credit unions often pride themselves on being more efficient than traditional banks because they don’t have as many employees working behind the scenes to manage operations. That means they can pass those savings onto customers in the form of lower fees on certain products like checking accounts or higher interest rates on savings accounts. 

Credit Unions for Small Business – FAQs

1. I’m a sole proprietor, but I don’t own a business. Can I still join?

Yes. A sole proprietorship is considered a business entity, so it counts as a small business.

2. Do I have to have employees?

No, but you should consider whether you will one day need to hire employees. You can set up an employee credit card account with most credit unions and banks.

3. How much cash can I borrow?

It depends on your credit score and income verification that you provide to the lender, along with other factors like collateral (if applicable) and other debts (mortgage payments, student loans). The amount you can borrow will also depend upon whether your business has been in operation for at least two years or more than five years (in which case it qualifies as an established business).

Do nonprofit organizations qualify for help from credit unions?

 Do nonprofit organizations qualify for help from credit unions?

Yes. Nonprofit organizations are eligible to become members of a credit union, and they can qualify for the same services as any other member.

The application process is a bit more complicated, because nonprofit organizations must submit an application by mail or fax along with proof of nonprofit status (such as 501(c)(3) IRS letter). Additionally, some credit unions charge higher membership fees for nonprofits than for-profit businesses.

Some credit unions provide different types of loans or loan programs specifically for businesses owned by nonprofits. For example, some offer loans with low interest rates or long repayment periods.

Others have programs that allow you to borrow money without having to repay it immediately — you pay back only when the nonprofit has income or assets available for repayment.

What is the importance of the right credit score when it comes to credit union eligibility?

 One of the most important factors when it comes to credit union eligibility is your credit score. This is a number that can range from 300 to 850 and reflects how well you manage your credit cards and loans.

The higher the score, the better. The lower your score, the harder it can be to qualify for a loan or line of credit with a credit union.

Here’s how credit scores work:

Your score ranges from 300-850. The higher your score, the more likely it is that you’ll qualify for a loan or line of credit with a credit union.

If you have an 800 or above, you’ll likely be approved for a loan at any time without being required to submit additional documents or proof of income or assets.

The best way to ensure you get approved for a loan with as little hassle as possible is by making payments on time and paying off debt before interest rates increase (if possible).

What is credit card routing?

Credit card routing numbers are used by companies that issue credit cards to process your payments. When you sign up for a new credit card, the issuing bank will assign you a unique number that identifies your account with them.

This number is known as your “credit card routing number.” The purpose of a credit card routing number is to help banks and other financial institutions process payments quickly and easily. This can include payments made via telephone or online, as well as checks written by customers.

What disclosures should I receive before applying for a small business credit card?

 Small business credit cards are a great option for companies with limited financing needs. The application process is simpler, and you can use the card to make purchases without having to worry about your own personal finances.

Small business credit cards often come with perks such as cash back rewards and low-interest rates. However, there are some things you need to consider before applying for one: What disclosures should I receive before applying for a small business credit card?

Disclosure requirements vary by state, but most states require at least three different disclosures:

• A summary of the terms and conditions of the agreement, including the annual percentage rate (APR) if it changes during the term of the account;
• A statement of any penalties or fees that may apply; and A statement informing customers that they can cancel their account within three days after signing up for it, and get any money already spent refunded.

What are business lines of credit?

 A business line of credit is a short-term loan that you can draw on as needed. It’s a flexible way to fund your business and it’s available for most types of businesses, including sole traders, partnerships and corporations.

Business lines of credit are essentially overdrafts – they’re loans that you can use as you see fit without having to go through the same approval process each time. That makes them extremely useful if you need extra cash to meet unexpected costs or pay for big purchases.

Unlike a business loan, which usually has a fixed term, the term on your line of credit can be changed whenever you want. You can also draw down more than the maximum amount available on your line at any time.

You’ll have to pay interest on any money that you borrow, but the rate will depend on how much is left unused at the end of each month and how long it’s been since you last borrowed from your line (as well as other factors). The interest rate will also increase if you’re late or miss payments.

Best Credit Unions Wrap Up

Here’s a wrap-up of the best credit unions in the country.

USAA

USAA was founded in 1922 and is headquartered in San Antonio, Texas. The credit union serves more than 5 million military members and their families. 

USAA offers savings accounts, checking accounts, IRAs and loans, among other products. 

It’s one of the few credit unions that is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.

EverBank

EverBank is headquartered in Jacksonville, Florida, where it was founded in 1905 as the American Bankers Life Assurance Society.

Today it has more than $23 billion in assets and serves over 6 million customers nationwide.

With its wide variety of banking products and services including home loans, business loans and small business loans, EverBank can help you finance your financial goals from start-ups to large purchases.