Navy Federal Credit Union offers the same variety of small business financing options that you would find at a national bank, but you must be a member in order to take advantage of them. If you have ties to the U.S. military and strong personal credit or an established business, it may be worth seeing if you qualify since credit unions typically provide lower rates and other benefits. We can’t say if that’s the case for all of Navy Federal small business loans because it does not publicly provide all rates and terms, but we’ll tell you what we do know about each of its products.
The largest U.S. credit union by assets, Navy Federal offers a variety of business loans, including SBA loans, plus a line of credit as well as a business credit card.
Term business loans from Navy Federal are both secured and unsecured, though unsecured loans are more difficult to qualify for. The maximum term loan amount for businesses less than 2 years old is $25,000.
Line of credit
Navy Federal may require you to secure your business line of credit against your receivables, inventory or real estate. The credit union also offers a checking line of credit, which can help protect against overdrafts. The maximum you may borrow with the checking line is $5,000, with a maximum APR of 17.90%. It also comes with a $50 annual fee.
Real estate loans are available for commercial real estate, investment properties, mixed-use property and renovations. Navy Federal lends up to 80% of the total property value for owner-occupied purchases or refinances but only up to 75% for investment properties. If you’re planning to renovate an existing commercial property, Navy Federal lends up to 65% of the value.
Business and commercial vehicles
Vehicle loans are available for business and commercial vehicles, whether new, used or refinanced. All small business vehicle loans come with no fees. Commercial vehicle loans can be used to purchase heavy-duty vehicles, semi-trucks, trailers and other hauling equipment.
Navy Federal offers a variety of small business financing options with flexible terms, but if your loan or line of credit comes with a variable interest rate, the eventual rate change could make it difficult to repay your debt. If you’re looking for fixed rates, you may want to see how other small business lender reviews compare to Navy Federal Credit Union business loan reviews.
It may also be a challenge to qualify for financing if your business is less than two years old. Unless you have strong personal credit and personal cash flow, your application may be declined or Navy Federal Credit Union may require you to back your loan with collateral.
Once you become a member of Navy Federal, you’ll need to make a deposit of either $100 or $105 before applying for a business loan.
You’ll then need to supply certain documents based on your business structure:
Required documents by business type
|Sole Proprietor||Partnership||Corporation||Single Member LLC||Multi-Member LLC|
|Federal TIN Letter||X||X|
|Fictitious Name Certificate or Certificate of Assumed Name (if applicable)||X||X||X||X||X|
|Beneficial Owner Form||X||X||X||X|
|Articles of Incorporation||X|
|Articles of Organization||X||X|
The type of loan you’re applying for determines additional paperwork you’ll need to submit including:
Personal credit is also taken into consideration.
For loans up to $50,000 you can apply and upload the required documents online, but you’ll have to talk to a representative to apply for larger amounts or to apply for a business line of credit.
Once all of the required application materials are submitted, NFCU approves or declines most requests within 5 business days.
Business owners must become members of Navy Federal Credit Union before applying for a small business loan. Membership is available to individuals in the following groups or programs:
Business owners can apply for membership online, over the phone or in person.