Are you an ambitious entrepreneur with an excellent business plan, and do you just need seed money to realize your vision for the future? Do you own and run an established small or medium sized business, and do you have big plans — like expanding your operations, upgrading your equipment, or making the move from leasing to owning your commercial property? Arizona Federal Credit Union may be the right lender for your needs.
Arizona Federal Credit Union — which is also known simply as Arizona Federal — is a federally chartered and regulated credit union, insured by the National Credit Union Association. Headquartered in Phoenix, Arizona, Arizona Federal Credit Union was first founded in 1936 as the Phoenix City Employees Federal Credit Union. This non profit financial cooperative has since expanded significantly, merging with several other credit unions over the course of its history. The fact that Arizona Federal Credit Union now operates under a community charter means that it is able to serve anyone who lives, works, attends school, or worships in Maricopa and Pinal counties in Arizona.
Today, Arizona Federal Credit Union manages more than $1.9 billion in assets, and has a membership of over 145,000. The credit union operates a total of 14 branch locations in and around Phoenix, AZ, and is part of the CO-OP shared branch network, which offers its members access to an additional 5,000+ shared branches throughout the United States, as well as more than 30,000 surcharge free ATM locations.
Arizona business owners and entrepreneurs who have exciting plans for the future, and who are looking for the right financial partner to realize their goals, should be aware that Arizona Federal Credit Union primarily serves natural persons. However, the credit union also offers a range of business bank accounts, business services, and a select number of commercial loan products. The business loans that Arizona Federal Credit Union can offer have competitive rates and low fees, and local companies will always get the personal attention they deserve.
“Small businesses and entrepreneurs in Maricopa and Pinal counties can take advantage of the fact that Arizona Federal Credit Union is an SBA preferred lender.”
What Does Arizona Federal Credit Union Offer?
Are you exploring which local credit union offers the commercial lending options and other business services that you need to realize your vision for the future? Keep reading to discover what sets Arizona Federal Credit Union apart, and how you as a business owner can benefit from the unique membership perks that this credit union offers.
A Range of Business Loan Products
Arizona Federal Credit Union is currently able to provide a limited number of business lending solutions, focusing its service on real estate and construction. The business loan options available at Arizona Federal Credit Union include:
- Commercial real estate loans. Whether you are currently leasing your commercial space and are looking to make the move to owning your business property, you are getting ready to finance an investment property to generate income and profits, or you want to explore refinancing an existing commercial real estate mortgage with Arizona Federal Credit Union to take advantage of the more favorable rates that this credit union offers, commercial real estate loans are Arizona Federal's main focus.
- Commercial construction loans. Arizona Federal Credit Union offers construction loans to qualified members that are planning to develop commercial owner occupied or non owner occupied commercial buildings, with flexible terms and at competitive rates.
- Commercial take out loans. Arizona Federal Credit Union is one of the few credit unions that specifically offers take out loans, a form of long term financing that can be used to replace short term loans such as interim construction loans. Such loans allow borrowers to make savings on the interest they would otherwise have paid.
- Commercial equipment loans. Business owners that are planning to purchase, replace, or upgrade specialized business equipment, machinery, or technology of diverse types can take advantage of Arizona Federal Credit Union's commercial equipment loans. The credit union is able to offer a wide variety of loan amounts and flexible terms are available.
- Small Business Administration (SBA) loans. Small businesses and new entrepreneurs in Maricopa and Pinal counties in the state of Arizona can take advantage of the fact that Arizona Federal Credit Union is an SBA preferred lender — and, in fact, the number one SBA lender in Arizona. Small Business Administration loans offer small business owners access to federally backed and guaranteed financing at uniquely competitive rates. Extended terms are available to help your business thrive. Two types of SBA loans are available through Arizona Federal Credit Union; namely SBA 7(a) loans and SBA 504 loans. An SBA 7(a) loan is intended to help you start, expand, or build your business, and may be used in a variety of ways, including as working capital. SBA 504 loans are intended for small business owners who wish to invest in real estate. Both options offer sizeable loan amounts; SBA 7(a) loans allow you to access financing of up to $5 million, while SBA 504 can cover even larger amounts.
Arizona Federal Credit Union manages nearly $2 billion in assets and is able to offer significant lending capacity. Specializing in real estate, Arizona Federal Credit Union provides a wide variety of loan amounts to business members who qualify. The terms that Arizona Federal Credit Union offers are flexible and varied.
Favorable Loan Terms
Businesses that are getting ready to invest in commercial real estate in Arizona do not need to look for term limits on Arizona Federal Credit Union's website — this credit union will create a flexible and tailor made commercial loan package suitable for your unique needs and circumstances. Present your proposal, and explore what Arizona Federal Credit Union's commercial lending team can do for you.
Credit unions are member owned non profit financial cooperatives. They exist to serve your needs. As such, working with a smaller credit union will offer your business more competitive rates. The rate Arizona Federal Credit Union can offer you on the commercial loan you need depend on a variety of factors. These include the type of loan you are seeking, your industry, how long you have been operational, your business credit score, and your current annual revenue and profits, as well as your projected profits. Having said that, you can expect more favorable rates than you would be able to secure from a traditional banking institution.
A Variety of Business Banking Solutions
Arizona based business owners who are in search of a financial home through which they will be able to manage all of their business banking needs will welcome the fact that Arizona Federal Credit Union offers a selection of no-nonsense business banking solutions — with the same competitive rates and low fees you have come to expect from a credit union. The business bank accounts that Arizona Federal offers include:
- Four different tiers of business checking accounts to suit your needs. The options include small business checking accounts, business platinum accounts, business analysis checking, and IOLTA. New startups appreciate checking accounts that do not have monthly fees or minimum balance requirements, and that offer a generous number of free monthly transactions. Larger ventures place a premium on dividend earning accounts. When you bank with Arizona Federal Credit Union, your business checking account can grow with your business.
- Business savings accounts. Arizona Federal Credit Union's basic business savings accounts earn a favorable interest rate of 0.05% APY, and you just need to pledge $25 to open this type of account.
- Business money market accounts have tiered dividend rates of up to 0.20%, depending on your balance, but still offer business owners the flexibility of making monthly withdrawals if they need to.
- Business certificates are available with terms that range from six months to 60 months, earning extremely competitive interest rates.
Your growing business needs comprehensive commercial insurance, and Arizona Federal Credit Union's business services team can connect you with the most favorable policies. Arizona Federal Credit Union can assist you in finding affordable workers' compensation insurance, general liability insurance, and cyber liability insurance, among other types of commercial insurance.
Many modern business owners and entrepreneurs will wish to conduct most of their day to day business banking needs, including making loan repayments, via online or mobile banking. Arizona Federal Credit Union offers a secure and user friendly digital banking portal. ID Protect, which offers credit file monitoring and even identity fraud expense reimbursement of up to $10,000, is automatically included in your Arizona Federal Credit Union membership.
Should you, however, wish to conduct your banking in person, Arizona Federal Credit Union operates 14 convenient branch locations in Phoenix, Glendale, Scottsdale, Avondale, Surprise, Gilbert, Chandler, and Mesa. Outside of the local region, Arizona Federal members can access over 5,000 shared branches through the CO-OP network, as well as more than 30,000 surcharge free ATM locations nationwide.
Excellent Customer Service and Experience
Arizona Federal Credit Union is a locally owned cooperative with more than seven decades of experience. Not only do the commercial lending specialists that you will be working with if you apply for one of the business loans that Arizona Federal Credit Union offers live and work in the same community as you, they also have a deep understanding of the local economy. When you partner with Arizona Federal Credit Union, you can tap into all of that knowledge and use it to your advantage as you build and grow your own business.
“Any natural person who lives, works, worships, or attends school in the area the credit union serves qualifies for membership. Almost any business operating within the same area may also become a member.”
Who Can Apply for a Commercial Loan From Arizona Federal Credit Union?
Because credit unions are member owned financial cooperatives, Arizona Federal Credit Union can only work with existing members — and therefore, unless your company has already obtained a business membership with the credit union, joining Arizona Federal should be your first step.
Arizona Federal Credit Union is currently a federally chartered credit union that has a community charter. As such, any natural person who lives, works, worships, or attends school in the area the credit union serves qualifies for membership. Any business operating within the same area may also become a member (with certain restrictions, such as, for example, businesses engaged in the gambling industry). The areas covered by Arizona Federal Credit Union's community charter are Maricopa country and Pinal county in Arizona.
As of 2022, Arizona Federal Credit Union has put a proposal to its membership that will, if approved, allow the credit union to convert from a federal charter to a state charter. Should this proposal pass, Arizona Federal Credit Union will in the future be able to serve any county in the state of Arizona — meaning that businesses that do not currently qualify for membership but that are based in Arizona may soon be able to join.
If you establish that you are able to become a member of Arizona Federal Credit Union, you can do so easily by providing basic information about your business. Arizona Federal Credit Union will ask all prospective account holders to supply their social security numbers as well as showing a valid government issued ID, such as a driver's license. In order to fund the account that will grant you membership with Arizona Federal Credit Union, you will have to provide either your current credit card details or your bank routing number.
Once this process is completed, your business will become able to apply for any of the commercial lending options that Arizona Federal Credit Union offers.
What Types of Commercial Loan Products Does Arizona Federal Credit Union Provide?
Before you apply for membership with Arizona Federal, you will want to review the business loans that this credit union provides. Arizona Federal Credit Union heavily focuses its commercial lending options on real estate, and it also offers a selection of other business loans.
Commercial Real Estate Loans From Arizona Federal Credit Union
Arizona Federal Credit Union offers commercial real estate loans for a wide variety of property types, such as office buildings, retail facilities, warehouses, and multi family buildings. Commercial loans are available to finance both owner occupied commercial real estate and investment properties — and those businesses that already have a preexisting commercial real estate mortgage may wish to explore whether refinancing with Arizona Federal Credit Union could lead to long term savings.
Commercial Construction Loans From Arizona Federal Credit Union
Property developers in the Phoenix Metro area will find an excellent financial partner in Arizona Federal Credit Union, which offers specialized commercial construction loans at competitive rates, with a variety of repayment terms being available. These loans are intended to finance the construction of diverse types of commercial and residential properties within the area that Arizona Federal Credit Union serves.
Commercial Take Out Loans From Arizona Federal Credit Union
Commercial take out loans serve the purpose of replacing short term financing, such as interim construction loans (one of the commercial construction loan types that Arizona Federal Credit Union offers), with long term financing once the construction of the property is finished. With a take out loan, you will be able to pay your interim loan off early, allowing you to take advantage of the much more competitive interest rates associated with long term financing. Arizona Federal Credit Union is one of the few credit unions that offers this type of financing, not just in Arizona, but nationwide.
Commercial Equipment Loans From Arizona Federal Credit Union
While Arizona Federal Credit Union focuses on commercial real estate in its business lending program, business owners who are intending to purchase new commercial equipment, or to replace or modernize existing equipment, can also work with this credit union in seeking financing. Arizona Federal Credit Union offers favorable rates and flexible terms that allow you to acquire the equipment, machinery or technology to take your business to the next level.
Small Business Administration Loans Through Arizona Federal Credit Union
The Small Business Administration is a US government agency that offers small business owners that meet the requirements financing at especially competitive rates. Generous loan amounts are available, at extended terms. SBA loans are designed to grow the local economy by supporting local businesses. Should you be interested in applying for a Small Business Administration loan, the fact that Arizona Federal Credit Union is the number one SBA lender in Arizona will be of special interest to you.
Arizona Federal Credit Union is currently able to process two distinct types of SBA loans:
- SBA 7(a) loans. These small business loans cover amounts of up to $5 million, and are intended to help you start, acquire, or expand a small business. SBA 7(a) loans can be used as working capital, to invest in commercial equipment, to expand your operations, to acquire a business, or to refinance existing commercial debt at a more favorable rate, among other options. Terms of 10 to 25 years are available.
- SBA 504 loans. These Small Business Administration loans are offered to qualified applicants intended to invest in real estate. Amounts of up to $1.8 million are available to finance non multi use properties, while up to $5.4 million can be made available for multi use properties. These loans have five year fixed interest rates that will allow your business to make long term savings.
What Are the Pros and Cons of Partnering with Arizona Federal Credit Union?
Business owners in the Phoenix Metro area who are intending to invest in commercial real estate will find an ideal partner in Arizona Federal Credit Union. Those who have other financing needs, such as a commercial auto loan, a business line of credit, or a business term loan should look for a credit union that offers those lending options.
How Do You Qualify for a Commercial Loan From Arizona Federal Credit Union?
Business owners who would like to apply for a commercial loan from Arizona Federal Credit Union can contact one of the credit union's commercial loan officers via Arizona Federal's website, or may visit the most convenient branch location, for further information. The process that Arizona Federal Credit Union will use to determine whether your business can be approved for commercial financing is identical to the process any other financial institution would use — Arizona Federal Credit Union will review your financial standing carefully to ensure that you will be able to carry the loan.
The key documents you will need to provide when you apply for a commercial loan from Arizona Federal Credit Union include:
- Business financial statements dating back three years should be supplied for commercial real estate loans, while two years may be sufficient for smaller business equipment loans. An interim financial statement for the last year may also be requested.
- Personal financial statements must be provided by those individuals that will be acting as principals and guarantors on the loan. These should date back three years in most cases.
- Business tax returns, both State and Federal, should be supplied in order to offer Arizona Federal Credit Union insights into your business' financial standing. If you are applying for a commercial real estate loan of any type, prepare business tax returns for the previous three years.
- Personal tax returns should also be supplied by principals and guarantors, for the same time period.
- Your formation documents play a key role in the loan application process as well. Submit your Articles of Incorporation, Operating Agreement, or other relevant documents.
- Proof of collateral will be required before your business can be approved for a secured loan from Arizona Federal Credit Union.
Arizona Federal Credit Union will proceed to review your business credit score, which would optimally be between 80 and 100 on the Dun & Bradstreet (D&B) PAYDEX. The FICO scores of principals and guarantors should optimally be over 670. Once Arizona Federal Credit Union has conducted a loan analysis, and determined your annual revenue and profits, debt to income ratio, and projected profits, a loan decision will be made.
In the case of Small Business Administration loans, the application process will differ slightly. Arizona Federal Credit Union can guide you through the application process and answer any questions you may have.