Glossary · People and paperwork
Credit union
In short
A non-profit financial institution owned by its members. They can offer business loans, including SBA loans, often with competitive rates.
What it means in a deal
While historically less common for SBA loans, some Credit unions are now active Participating banks in the 7(a) program. Don't overlook them; they might have a strong community focus and competitive offerings for small business acquisitions.
Related terms
Common questions about Credit union
- Can personal funds borrowed from a credit union against personal assets count towards my equity injection?
- What if my personal credit report shows a recent late payment on a minor credit card?
- Does having many recent credit inquiries on my personal credit report affect SBA 7(a) loan approval chances?
- Does the sunset of the SBSS score impact the requirement for a credit memo or documented credit analysis for 7(a) Small Loans?
- Can a credit card cash advance be used for my down payment?
- What is the 'credit elsewhere' test for an SBA 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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