Do credit unions offer business loans?

Business owners big and small face many decisions when it comes to funding growth, purchasing equipment or managing cash flow. One of the most important decisions is choosing the right financial institution for borrowing. While large commercial banks are a common choice for business financing, credit unions are a powerful, community-focused alternative worth considering.

So, do credit unions offer business loans? Yes, and they may be more flexible and cost-effective than many business owners realize.

How do credit unions support businesses?

Credit unions are not-for-profit financial cooperatives owned by their members. Unlike traditional banks that aim to generate profits for shareholders, credit unions reinvest earnings into providing better rates and services for their members. This community-driven model often translates into competitive corporate loan rates, fewer fees and more personalized support for small businesses.

Many credit unions offer a wide range of loan products specifically designed to help small businesses grow, including:

• Term loans
• Business auto loans
• Lines of credit
• Commercial real estate loans
• Equipment financing
  

Types of business loans credit unions offer

1. Term loan: Term loans are the most traditional form of business financing. These loans provide a lump sum upfront that you repay over a fixed term, usually at a fixed interest rate. They’re ideal for:

• Expanding your operations
• Purchasing new equipment
• Hiring additional staff
• Consolidating existing business debt

Credit unions typically offer term loans with lower corporate loan rates than traditional banks, making them attractive for budget-conscious entrepreneurs.

2. Business auto loans: If your business relies on transportation, whether for deliveries, mobile services or client visits, a business auto loan can be essential. Credit unions frequently offer business vehicle loans with:

• Competitive interest rates
• Options for both new and used vehicles
• Terms aligned with vehicle depreciation schedules
• Streamlined application processes
• Fast, local underwriting

3. Lines of credit: A business line of credit works like a credit card: you draw funds as needed and only pay interest on the amount you borrow. This type of financing is useful for managing short-term expenses like:

• Payroll
• Inventory purchases
• Seasonal slowdowns
• Emergency repairs

Many credit unions offer revolving lines of credit with flexible terms and ongoing access to working capital.

4. Commercial real estate loans: Credit unions also finance property purchases, including office buildings, warehouses and retail spaces. These commercial real estate loans can offer:

• Fixed or variable interest rates
• Long repayment terms (often 10–25 years)
• Amortization options that align with your business goals

They’re a strong option for developers, investors and landlords as well as business owners looking to build equity in a permanent location rather than leasing space.

5. Equipment loans: Need to buy a new printer, diagnostic tools, construction equipment or manufacturing machinery for your practice or business? Equipment loans are specialized for these kinds of purchases. Credit unions often provide flexible financing for both new and used equipment, with the equipment itself typically serving as collateral.

6. Business credit cards: A business credit card can streamline purchases, manage employee expenses and provide a backup for short-term cash flow. Solarity’s credit cards come with:

• No annual fee, cash advance fee, or balance transfer fee*
• Credit limits up to $50,000
• Employee cards at no extra cost
• Overdraft protection capabilities

To explore a full range of financing options for your business, including auto loans, equipment financing and lines of credit, visit Solarity’s business lending page to learn more. Or call 800.347.9222 to apply today.

If you're looking to purchase, build or refinance commercial property, explore Solarity Credit Union’s commercial real estate loan options for flexible terms and local expertise.

A closer look: How credit unions serve small businesses

Credit unions are particularly well-suited to serve small businesses, which often face more hurdles than larger companies when seeking financing. Here’s why small businesses benefit from working with credit unions:

• More flexible underwriting: Many credit unions are willing to work with newer businesses or those without perfect credit histories.
• Local decision-making: Lending decisions are often made by staff who understand the local economy and your industry’s challenges.
• Tailored support: Credit unions tend to take a relationship-based approach, helping small businesses grow over time.

For small-business owners who value personalized service, transparent terms and a long-term partnership, credit unions can be an excellent choice.

Why choose a credit union for your business loan?

While banks may offer similar loan products, credit unions often provide advantages that can be particularly beneficial to small and midsize businesses:

• Lower corporate loan rates thanks to the not-for-profit model
• Personalized service with local decision-makers who understand your community
• Flexible underwriting that takes a holistic view—considering more than just credit scores or rigid criteria—to help newer or uniquely positioned businesses access funding
• Member-centric policies focused on long-term financial health rather than shareholder returns

Credit unions are also more likely to build long-term relationships with small-business members, offering advisory support and financial education along the way.

Considerations before you apply

Before choosing any financial institution for your business loan, it’s important to:

• Compare rates and terms: Look closely at interest rates, repayment schedules and total loan costs.
• Check eligibility: Some credit unions require business membership or a certain geographic presence.
• Review customer service quality: Personalized, local service can be a major benefit for newer or growing businesses.
• Understand the collateral requirements: Some loans require assets (like equipment or property) as security.
  

Conclusion

So, do credit unions offer business loans? Yes, and for many entrepreneurs, they offer a smarter, more flexible way to finance growth. With lower fees, personalized support and competitive corporate loan rates, credit unions are well-equipped to serve the needs of today’s small businesses.

Whether you're exploring options for a commercial real estate loan, a business car loan or a long-term equipment financing solution, it’s worth considering a credit union like Solarity alongside other lenders.

Taking the time to explore your options could save your business money and set you up for sustainable success.

If you have questions about which loan product is the right fit for your business or you're ready to take the next step, Solarity’s business banking team is available to help. Our team of local experts can provide personalized guidance based on your goals, whether you're seeking short-term working capital or planning a long-term investment. Don’t hesitate to reach out and start a conversation that could move your business forward. You can learn more or get in touch at solaritycu.org/business or by calling 800.347.9222 today.