Business LoansSmall Business Lender Reviews
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Navy Federal Business Loan Review

Updated on:
Content was accurate at the time of publication.

  Starting APR range: 17.90% for business checking line of credit; other rates are not disclosed.

  Best for: Business owners who are already satisfied members of Navy Federal Credit Union.

ProsCons

  May offer SBA loans

  Full-service business banking

  Good reputation for customer service

  Most loans can be used for refinancing

  Doesn’t offer preapproval

  Lines of credit carry expensive fees

  Must be a business member to apply

  Not openly transparent with financing details

  Collateral required for most financing options

  Insurance required for most types of collateral

  25% down payment required for equipment purchases

  May not be able to use line of credit for one month of the year

Navy Federal Credit Union specializes in helping military service members, veterans, Department of Defense personnel and their family members access quality banking services.

You’ll need to be a credit union member on its personal banking side before you can apply for business membership, and you’ll already need to be a business member before you can apply for a loan. Navy Federal is remarkably tight lipped about its small business loans, but given its high customer satisfaction rankings for its personal banking offerings, it could be worth it for you if you already have an account there.

Who is Navy Federal Credit Union for?

  • You’re already a Navy Federal business member. Navy Federal doesn’t offer business loan preapprovals, and you can’t apply unless you’re already a member. Applying for business membership itself is a long, expensive and arduous process.
  • You’re not looking for fast funding. It can take a week or more to get a credit decision, meaning you’ll need to plan carefully before you apply — but that’s not necessarily a bad thing, to be honest.
  • You value good customer service. Little information is publicly available for Navy Federal’s business banking services, but its loan services for individuals consistently receive top-notch ratings from independent reviewers like J.D. Power.

ProductLoan amountsRepayment termEstimated APR rangeFees
Commercial real estate loansNot disclosed60 months, with 240-month amortizationNot disclosedTitle, appraisal, attorney fees and more may be required.
Secured business line of creditStarting from $35,000VariesNot disclosed
  • Annual fee: $325 for credit limits up to $100,000
  • Origination fee: 0.50% for credit limits over $100,000
  • May also charge unspecified lien and recording fees
Checking line of credit$500, $1,000 or $5,000Varies17.90%Annual fee: $50
Term loansStarting from $10,000 ($40,000 for commercial vehicle purchases)Not disclosedNot disclosed
  • Origination fee: $150
  • May also charge lien and recording fees

Term loans

You can apply for a standard business term loan that you can use for a wide range of purposes, although Navy Federal suggests using them for equipment financing, company expansion or building improvements. You’ll be required to back your term loan with some kind of collateral (if you’re investing in property or equipment, just use your new acquisition).

Navy Federal allows you to borrow up to 75% of the cost of financing a new equipment purchase — which means you’ll need to come up with a down payment of at least 25%. Unfortunately, Navy Federal doesn’t provide any information on the cost of the loans or how long these loans last unless you actually apply for a loan. You may also be able to get an SBA loan through Navy Federal.

Line of credit

Navy Federal offers two types of lines of credit: a Business Line of Credit (BLOC) that you can draw against as needed or a Checking Line of Credit (CLOC) that serves to cover overdrafts from your Navy Federal business checking account. You’ll need to offer some sort of collateral for all BLOCs (technically making it a secured business line of credit) while the CLOC is collateral-free.

In addition to interest, you’ll pay an annual $325 fee for a BLOC ($50 for a CLOC), whether you use it or not. Navy Federal also has a “clean-up period” for some BLOCs, requiring you to keep a $0 balance for at least 30 successive calendar days a year. If your account requires this, you won’t be able to access it during this time. Make sure you have a back-up plan in place so this doesn’t affect your cash flow.

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Commercial real estate loans

If you’re looking to buy, refinance or renovate your business location or an investment property, Navy Federal may be able to help with a commercial real estate loan. There are no prepayment penalties, although there are plenty of other real estate fees.

Unfortunately, you won’t find out how much these fees might be or even basic details like the range of rates the credit union is charging unless you apply for a loan. You may be able to choose between fixed or variable rates, however.

Minimum annual revenue$100,000 for term loans and lines of credit. Information not disclosed for other financing types
Minimum time in business1 year for most loans, depending on amount financed
Minimum credit scoreNot disclosed

Navy Federal Credit Union has extremely strict business loan application requirements. You’ll need to be a business member before you can apply for any financing options at all. To become a member, you’ll need to fill out a lengthy application, spend up to an hour on the phone with a banker and put down a deposit of $250 to $255, depending on your business type. If you have business partners or co-owners, they’ll each need to be independently eligible for membership as well.

Navy Federal Credit Union doesn’t offer preapproval on any of its financing options and you’ll need to have been a business member for at least a year before you can even apply for its business line of credit, term loans and commercial vehicle loans.

If you need a business loan fairly soon, Navy Federal won’t be a viable option unless you’re already an established member and you don’t mind a hard credit inquiry showing up on your personal credit report in order to check your loan options with this lender.

Required documents

If you haven’t yet applied for a Navy Federal business loan you might be left in the dark about what it can offer you, but one thing it’s very upfront about is the documentation you’ll need to apply. (Remember, that’s assuming you actually are eligible to apply for a loan in the first place.) The required documents vary depending on what type of loan you’re applying for, but generally include:

  • Business plan
  • Personal guarantee
  • Completed loan application
  • Business and personal tax returns from previous two years
  • Certificate of insurance (for vehicle and equipment purchases)
  • Current business financial statements, such as profit and loss statements, aging reports, balance sheets, etc.

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Navy Federal Credit UnionU.S. BankBank of America
Minimum credit scoreNot disclosedNot disclosed670
Loan products offered
  • Term loans
  • Lines of credit
  • Checking lines of credit
  • Commercial real estate loans
  • SBA loans
  • Term loans
  • Equipment financing
  • Commercial real estate loans
  • Healthcare practice loans
  • SBA loans
  • Auto loans
  • Term loans
  • Lines of credit
  • Equipment loans
  • Commercial real estate loans
  • Healthcare practice loans
Time to fundingUp to seven business days to receive a decision. Time to funding not disclosed after thatNot disclosedNot disclosed
Starting APR
  • 17.90% for checking lines of credit
  • APRs not specified for other financing options
  • Prime + 1.99% for certain lines of credit
  • 8.49% for certain loan options
  • 6.00% for commercial real estate loans
  • 6.99% for vehicle loans
  • 6.75% for equipment loans secured business loans
  • 9.50% for secured lines of credit
Maximum loan size
  • Up to $5,000 for checking lines of credit;
  • maximum amounts not specified for other financing options
  • Up to $5,000 to $1,000,000 for certain lines of credit
  • $250,000 to $12,375,000 for certain term loan types
  • $1,000,000 for equipment financing
  • Up to $5,000,000 for healthcare practice loans
  • Lines of credit have no set maximums
  • Maximum loan amount not disclosed for other loan types
Minimum annual revenue$100,000 or more for term loans and lines of creditNot disclosed
  • $50,000 for secured lines of credit
  • $100,000 for unsecured lines of credit and unsecured term loans
  • $250,000 for other loan types

Navy Federal Credit Union vs. U.S. Bank

U.S. Bank offers more financing options than Navy Federal Credit Union, although it’s also frustratingly quiet about many of the specifics you need to know in order to decide whether it’s worth applying for financing.

On the bright side, U.S. Bank does offer preapproval for some of its financing options,so it’s easier to get that information compared to the run-around you’ll need to do for Navy Federal. U.S. Bank does offer some military benefits, but only on the personal banking side, unfortunately.

Navy Federal Credit Union vs. Bank of America

Compared to Navy Federal, Bank of America also offers many more small business financing options and is much more openly available. Any small business owner is eligible to apply as long as they’re a U.S. citizen or legal resident at least 18 years or older. You don’t even need an existing account before applying for financing. Plus, Bank of America offers several small business financing fee discounts for military veterans.

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