Navy Federal Credit Union business loans review
Secured and unsecured business financing for servicemembers, vets and their families.
finder.com’s rating: 3.75 / 5.0
- Best for established small businesses.
- Pick something else if you're not a service member, veteran or a relative.
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
Navy Federal Credit Union specializes in serving military members and their families. Like with many other credit unions, you’ll have to join first before you apply. Its application is more involved than you might find elsewhere — so it’s not ideal if you’re looking for fast business financing.
It’s relatively tight-lipped about key details about its business loans, like rates. But due to federal credit union regulations, it can’t charge rates over 18% — lower than what you’ll find with most non-credit union loans.
How much will this loan cost me?
Rates on Navy Federal Credit Union’s unsecured term loans run as high as 18% APR with terms up to five years. Your APR includes an origination fee that varies based on the amount you borrow.
Without putting up collateral, you can borrow up to $25,000 — though loans up to $25,000 are available if you back your loan with equipment or other collateral. Use the calculator below to learn how much your loan will cost each month based on different rates, loan amounts and terms.
Business loan calculator
See how much you'll pay
|Loan terms (in years)|
How it works
The rates and terms you get depend on factors like your loan amount, your personal credit history, time in business and financial projections.
You’ll likely get lower rates and qualify for larger loan amounts if your business has been around for several years and you have excellent credit — typically 740 or higher. The maximum rate goes to borrowers who just squeak by NFCU’s requirements.
What do I need to qualify?
You must meet the following requirements to get an unsecured business loan through Navy Federal Credit Union:
- Business member
- In good standing with NFCU
- At least two years in business
NFCU doesn’t have any other hard requirements, but it still considers factors such as your credit score and revenue when processing your application. And you may be able to qualify for a secured loan your business has been around for less than two years.
Individual membership eligibility
You’re eligible to become a NFCU member if you fall into one of the following categories:
- Active-duty member of the Army, Navy, Marine Corps, Coast Guard, Air Force or Air National Guard.
- Member of the Delayed Entry Program (DEP)
- Department of Defense (DoD) reservist, officer candidate or ROTC member
- DoD civilian employee, including contractors assigned to US government installations
- Veteran, retiree or annuitants of the armed forces or DoD
- Family or household member of the above
Business membership eligibility
Your business must meet the following requirements to apply for business membership.
- All individuals with 25% ownership or more must be NFCU members
- All owners’ accounts must be in good standing
What information do I need to apply?
Again, one of the drawbacks of NFCU’s business loans is the relatively complicated list of documents compared to other lenders. You and your business also need to provide documents to apply for business membership.
Documents to become a business member
Required documents vary depending on what type of business you have.
Documents to apply
At a minimum, business owners typically need to provide the following documents and forms along with their application:
- Two years of personal tax returns
- Business plan with three years of cash flow projections
- Personal financial statement
What industries does it work with?
Navy Federal Credit Union doesn’t disclose any restricted industries. But since it’s a federal credit union, you likely won’t approved if your business is involved in any federally illegal activities.
What other types of financing does NFCU offer?
On top of unsecured business loans, your business can apply for the following types of financing from NFCU:
- SBA PPP loans. This is the only loan program available during the coronavirus outbreak. You can borrow up to $10 million to cover payroll costs and get up to 100% of the loan forgiven. Pay any remaining balance over a two-year term at 1% interest.
- Secured term loans. Businesses that put up collateral can borrow up to 75% of the collateral’s value.
- Business line of credit. Secured and unsecured access to cash as you need it, with for credit limits up to $15,000 and variable rates.
- Checking line of credit. Protect your checking account from overdrafts up to $5,000 and rates fixed at 17.9% APR.
- Business vehicle loans. Get up to 100% financing for new vehicles and 90% financing for used vehicles like cars, SUVs and light trucks.
- Commercial vehicle loans. Get up to 80% financing for new and 75% financing for used financing for commercial, special or heavy-duty trucks, as well as rolling stock like tractor trailers.
- Commercial real estate loan. Financing for all types of commercial-use properties with a range of repayment terms to choose from.
Pros and cons
There are a few good reasons to apply for a NFCU business loan. But you might also want to consider these drawbacks.
- No prepayment penalties
- Secured and unsecured loans
- Maximum APR of 18%
- Offers SBA PPP loans
- Doesn’t offer preapproval on any loans
- Not transparent about rates and fees for all loans
- No unsecured loans over $25,000
- Individual and business membership required
See other top business loan options
Is Navy Federal Credit Union legit?
Yes, Navy Federal Credit Union is a legitimate lender. Its federal credit union status means that it’s regulated by the National Credit Union Administration. That’s why its loans come with an 18% interest rate cap.
It also offers several security features to keep your information safe. This includes SSL encryption on its website and has the option to sign up for two-factor authentication to protect your account. You can also find other information and tips to keep your information secure on its website.
Navy Federal Credit Union reviews and complaints
|BBB customer reviews||1.19 out of 5 stars, based on 116 customer reviews|
|BBB customer complaints||886 customer complaints|
|Trustpilot Score||4.6 out of 5 stars, based on 511 customer reviews|
|Customer reviews verified as of||15 October 2020|
Navy Federal Credit Union gets mixed reviews. Many customers are happy with the quality of customer service they received when calling in. But a few mention that the process could be faster. Some also mention getting a better deal with another lender.
How do I apply?
Once you become a business member, you can apply for a business loan online, over the phone or at a local branch. If you want to borrow more than $50,000, you’ll need to call 877-418-1462 to speak with NFCU’s business development team. Otherwise, follow these steps tp apply online.
Steps to apply
Not a business member yet? You and your partners will need to submit the business membership form first. Here’s how:
- Go to the NFCU website and hover over Services in the main navigation bar. Select Business services.
- Scroll down and click Membership. Then Learn more.
- Gather your documents and click Download application. If your business is a corporation, partnership or LLC, you also need to complete a beneficial owner form and submit it along with your application.
- Upload your application, documents and forms by clicking Secured Document Upload (SDU) at the bottom of the page. Or, print out your documents and forms and bring them to your local branch.
Already a member? Follow these steps to apply for a business loan:
- Go to the NFCU website and hover over Services in the main navigation bar. Select Business services.
- Scroll down and click Business solutions, then Business loans.
- Scroll down again until you reach the How to apply section. Click on the hyperlinked text to download the application form and beneficial owner form.
- Fill out, sign and scan both forms.
- Click on the hyperlinked text that reads Business loan application submission link to upload all forms and documents to NFCU’s website.
- Follow the directions to review and submit your application.
How do I apply for a PPP loan?
Navy Federal Credit Union has a slightly different application process for its PPP loans. You can apply by following these steps.
- Go to the SBA website and download the PPP application.
- Complete your PPP application and scan all required documents.
- Log in to your business or personal NFCU account and upload the application and documents to your account.
You should receive a notification that NFCU received your application. It might take a few days, due to the popularity of the program. How long it takes to receive your funds can vary, but it’ll likely take at least a few days.
What happens after I apply?
It can take up to five days for NFCU to process your application. Its business services team might reach out to you to request additional documentation.
How do repayments work with NFCU business loans?
Navy Federal Credit Union business loans come with monthly repayments, which you can sign up to have automatically deducted from your business bank account. You can find the details of your repayment term, due date and amount in your loan documents.
Watch your business bank account and loan balance. If you notice any charges that don’t make sense or have other questions about your loan, reach out to customer service as soon as possible.
Explore more financing options by visiting our guide to business loans.
Frequently asked questions
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