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Jordan Schneir
By: jordan_shneir
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Best Credit Union For Small Businesses

When it comes to finding the best credit union for small businesses, there are a few things you need to take into account.

First, what type of services are you looking for? Second, what is the size of your business? And third, what is your location?

In this blog post, we will discuss the best credit unions for small businesses when it comes to savings accounts and small business loans.

No matter what type of business you run, it’s always a good idea to separate your personal finances from your business finances. However, you don’t necessarily need to go to a traditional bank to do this.

Credit unions are an excellent alternative for small business banking.

Table of Contents
1. What are credit unions?
2. How to choose a credit union for your business accounts
3. Best credit unions for small businesses 
4. Credit unions for savings accounts
5. Credit unions for business checking accounts in the U.S.
6. A list of the best credit unions for small business loans
7. Is a credit union what you were looking for?
8. FAQs

What Are Credit Unions?

Credit unions are cooperative (member-owned), not-for-profit organizations. Whereas traditional banks aim to make a profit, any money credit unions make put back into the organization to improve its services.

All credit union members are part-owners and can vote on the credit union’s board of volunteers.

One of the most significant advantages of credit unions for small businesses is that they often offer small business loans with much more favorable rates than banks.

Since credit unions are not-for-profit organizations, there’s no reason for them to charge unreasonably high-interest rates.

While credit unions often offer more attractive financial tools and perks than banks, they are often more difficult to join.

Every credit union has its eligibility requirements. Some may require you to work in a specific industry, while others need you to live within a particular area.

people looking for the best credit union for small business

Banks vs. Credit Unions, Which is Better?

Credit unions offer many of the same financial tools as banks—checking accounts, savings accounts, loans, credit cards, etc. However, while they do offer many of the same benefits, keep in mind that credit unions are not banks.

Banks are for-profit institutions. As such, they often have higher interest rates on loans, lower APYs on savings accounts, charge higher fees, and more.

What is APY?
APY stands for Annual Percentage Yield, and it’s the yearly interest rate in a bank account (how much money you earn as a percentage of your current savings).

On the other hand, banks offer some benefits that credit unions can’t match. For example, major banks have branches and ATMs in nearly every city across the country.

Meanwhile, it can be challenging to find a credit union branch when you urgently need assistance depending on where you live.

Large banks are also often better equipped to serve small businesses. They usually offer a wider range of banking tools and services that make the lives of small business managers much easier, such as better online banking tools.

All things considered, credit unions are an excellent option for small businesses as long as you understand what you may be missing out on.

How to Choose a Credit Union for Your Business Accounts

The best credit unions for business accounts are the ones that offer the best rates and services for your needs. Here is a step by step instructions on how to choose a credit union for your business accounts:

  • Decide what type of account you need. There are different types of accounts available, so make sure you select the one that best suits your needs.
  • Research, look at different credit unions, and compare their rates and services.
  • Narrow down your options and chooses two or three credit unions that offer the best rates and services for your needs.
  • Visit the credit unions’ websites or branch locations in-person to learn more about them and decide which one is right for you.

Choosing a credit union for your small business can be a daunting task, but it’s essential to do your research and select the one that best suits your needs.

By following these simple steps, you can rest assured that you’re making the best decision for your business.

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Best Credit Unions for Small Businesses

If you’re interested in becoming a credit union member, it’s crucial to find one that serves small businesses and can meet your needs.

To help make your search a little bit easier, here are five of the best credit unions for small businesses.

First Tech Federal Credit Union

First Tech Federal Credit Union is a California-based credit union with excellent online banking tools—making it easy to monitor and manage your business’ finances.

First Tech offers three business checking accounts: Carefree Checking, HSA Checking, and Dividend Rewards Checking, the latter of which offers up to 1.50% APY. There are also three business savings accounts, which offer APYs ranging from 0.05% to 0.20%.

To become a member, you need to:

  • Work for an innovative company on their partner list or the State of Oregon.
  • Work or live in Lane County, Oregon.
  • Belong to the Computer History Museum or Financial Fitness Association.
  • If you don’t meet any of the criteria,  the institution encourages you to give them a call or stop by a branch to help you navigate.

America First Credit Union

America First Credit Union might be the most business-friendly credit union in the nation, thanks mostly to its small business loans.

Small business owners can apply for SBA secured and unsecured lines of credit, SBA auto loans, commercial real estate loans, equipment loans, and more. America First also offers a designated business credit card with customizable rewards.

Additionally, America First is part of the Co-op ATM network—giving customers access to thousands of ATMs across the country.

Also notable, America First offers different savings options, including certificates of deposit. The APYs for the various accounts depend on a variety of factors, including account balance, term length, and more.

Eligibility is dependent on where you live and work. 

Navy Federal Credit Union

Navy Federal Credit Union (NFCU) offers several great services and perks for individuals and small businesses.

NFCU offers five savings options with up to 0.90% APY, loans, business lines of credit, online and mobile banking, and business credit cards with flexible rewards.

As you might’ve guessed by the name, you must be an active service member, veteran, family of a service member, or a civilian working for the Department of Defense to qualify for membership at NFCU.

Consumers Credit Union

Illinois-based Consumers Credit Union is one of the best credit unions and one of the easiest to be eligible for. All you need to do is pay a one-time $5 fee to join the Consumers Cooperative Association and become eligible to join this credit union.

Consumers Credit Union offers a business checking with four tiers. APYs on these accounts range from 0.05% to 0.25%. However, there is only one savings option for small businesses, which offers 0.10% APY with a $50 minimum account balance.

This credit union also offers money market and CD accounts, SBA loans, commercial real estate loans, equipment loans, business lines of credit, and more.

Thanks to the lenient eligibility requirements and variety of business-focused services, Consumers Credit Union is one of the best credit unions for small businesses.

Alliant Credit Union

Alliant Credit Union, based in Chicago, is one of the most reputable and small business-friendly credit unions in the country.

Alliant, unfortunately, does not offer bank accounts designed for small businesses. However, Alliant’s personal bank accounts provide full-featured mobile and online banking options. As such, these personal accounts can work for small businesses as long as you avoid commingling your business and personal finances.

Alliant’s high-interest checking offers a competitive 0.25% APY, while the high-interest savings account offers up to 0.75% APY.

Alliant also offers personal loans with generous rates and commercial real estate lending.

There are only two physical Alliant branches, but this credit union does have a vast network of ATMs all over the country.

To become a member, these are the requirements:

  • Employees & Retirees of select organizations.
  • Relatives of existing Alliant members.
  • Live or work in a qualifying community.
  • If you are not eligible, you can support their partner charity.
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Credit Unions For Savings Accounts

When it comes to finding business credit unions, one of the most important factors is the type of services they offer.

If you are looking for a credit union that offers great savings accounts, these other five are some of the best in the United States.

Andrews Federal Credit Union

This credit union is in Suitland, Maryland, and is available to anyone living or working in Washington D.C., Maryland, or Northern Virginia. It has over $900 million in assets and more than 110,000 members.

Boeing Employees’ Credit Union

This credit union is in Seattle, Washington, and is available to anyone who lives or works in Washington. It has over $11 billion in assets and more than 720,000 members.

Connex Credit Union

This credit union is in Boston, Massachusetts, and is available to anyone living or working in certain parts of Massachusetts or Rhode Island. It has over $500 million in assets and more than 83,000 members.

San Diego County Credit Union

This credit union is in San Diego, California, and is available to anyone living or working in San Diego County. It has over $14 billion in assets and more than 760,000 members.

Credit Unions For Business Checking Accounts in the U.S.

The best credit unions for checking accounts offer low or no fees, high-interest rates, and great customer service. Here are some of them:

Credit Unions for Business Checking Accounts
Alliant Credit UnionNavy Federal Credit Union
TruWest Credit UnionBlue Federal Credit Union
California Coast Credit UnionConsumers Credit Union
Pentagon Federal Credit UnionCoast Capital Savings
Washington Trust BankPNC Bank
San Diego County Credit UnionCredit Union of Southern California
The Golden One Credit UnionFirst National Bank of Omaha
Digital Federal Credit UnionUMB Bank

These were a combination of the best credit union banks for small businesses that you can analyze to choose the financial institution that suits your needs.

Advantages of Having a Checking Account with a Credit Union

A checking account with a credit union has many advantages over a checking account at a traditional bank.

For example, credit unions tend to have lower fees and offer higher interest rates on savings accounts than conventional banks.

In addition, credit unions often have more personalized service, thanks to their smaller size. If you’re looking for a great deal on a checking account, consider opening one at a credit union.

  • lower fees
  • higher interest rates on savings accounts
  • more personalized service due to smaller size

A List of the Best Credit Unions for Small Business Loans

Small businesses are the backbone of the American economy, and they need access to capital to grow and thrive. Credit unions offer some of the best small business loans available, and several credit unions stand out when it comes to lending to small businesses.

Business loans from credit unions can be a great option, but it’s important to compare interest rates and terms from multiple lenders before deciding.

  1. Navy Federal Credit Union
  2. Pentagon Federal Credit Union
  3. State Employees’ Credit Union
  4. Suncoast Schools Federal Credit Union
  5. Tinker Federal Credit Union
  6. United Nations Federal Credit Union
  7. Western Credit Union
  8. Wright-Patt Credit Union.

Each of these credit unions offers business loans to small businesses, and they have a proven track record of helping businesses grow and succeed.

So if you’re looking for a loan to help your business thrive, be sure to check out the credit unions listed above.

Benefits of Taking a Business Loan From a Credit Union

One of the biggest benefits of taking a business loan from a credit union is that you’re likely to get a lower interest rate than you would from a bank.

Credit unions are not-for-profit institutions that pass along their savings to their members.

In addition, credit unions often have more flexible eligibility requirements than banks do, making them a good option for businesses that may not meet traditional lending criteria.

Another big advantage of borrowing from a credit union is the personal attention you’ll receive from your lender.

People know credit unions for their personalized service, and you can expect to work with a loan officer who understands your business and can help you get the funding you need.

If you’re looking for a small business loan, be sure to check out the credit unions listed above. They offer some of the best rates and terms available, and they’re dedicated to helping small businesses grow and succeed.

Is a Credit Union What you Were Looking for?

Credit unions are a fantastic alternative to banks for many small businesses. While you may have to make some sacrifices with regards to ATMs, physical locations, and services, the best credit unions for small businesses often offer much better loan rates, APYs, and customer service.

But if you realize credit unions are not quite what you need, there are still amazing alternatives for your small business.

Keep reading: The Best Online Banking Options for Small Businesses 

If your business needs additional financial assistance, consider applying for a small business loan. At Camino Financial, we operate on the motto, “No Business Left Behind,” which is why we offer small business loans with competitive rates, great terms, and low fees. 

You may be interested in our guide about Best Buy for Business.

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FAQs

Which credit union is best for LLC?

There isn’t a single “best” credit union for LLCs since each one will have its own policies and procedures. However, some credit unions may be more amenable to working with LLCs than others.

One thing to keep in mind is that not all credit unions offer the same services. Some may better lend money, while others may be more geared towards providing checking and savings accounts. It’s important to find one that suits the needs of your business.

Another thing to consider is location. If you’re based in a certain area, joining a credit union with branches near you might make sense.

Is it better to have a business account with a credit union?

It can be better to have a business account with a credit union because they often offer more favorable terms and rates than traditional banks. For example, many credit unions do not charge monthly account fees, and they may offer lower interest rates on loans and lines of credit.

Additionally, credit unions are typically more member-focused than traditional banks.

This means that you may find it easier to get help from a credit union when you need it.

However, it’s important to shop around and compare rates and services before deciding which institution is right for your business needs.

What type of account is best for small businesses?

A business checking account is best for small businesses.

It’s a type of bank account that’s designed for businesses and has features that help track expenses and manage money.

Some business checking accounts also offer discounts on services like credit card processing and merchant accounts.

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