Business Lending

Get the funds you need to grow your Alaska business with the local credit union you trust.

Terms and conditions apply. Subject to approval.

Lending for Alaska Businesses

Looking for the financial fuel you need to grow your business? Whether you’re looking to improve cash flow, invest in new opportunities or upgrade your operations, our flexible lending options are tailored to support a wide range of business needs, such as:

Buying inventory
Upgrading equipment
Financing business vehicles
Purchasing new equipment
Boosting working capital
Covering everyday business expenses
And more!

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Types of Loans

Business Credit Card: Everyday business purchases
Business Equipment: Heavy equipment, large commercial vehicles, etc.
Business Unsecured: General business expenses without collateral
Business Vehicle: Consumer style vehicle for business use
Business Line of Credit: Working Capital (can be secured or unsecured)

Needed to Apply:

Completed loan application
Most recent 1 - 2 years tax returns (personal and business)
Personal guarantees of all owners with 20% or more ownership
Minimum time in business of 18 months with one full year of cash flow reported on a tax return

Our Underwriting Criteria:

Primary Criteria:
- Minimum Global Debt Service Coverage Ratio (GDSCR): 1.25x
- Minimum Debt Service Coverage Ratio for the business (DSCR): 1.25x
- Minimum Credit Scores of Guarantors: 640
Secondary Criteria:
- Minimum Net Worth: 2x loan amount
- Minimum Liquidity to Total Debt: 7%

What to Expect:

The process can vary depending on the request and ownership structure. Generally, you will need to submit an application and provide the necessary documentation, including 1-2 years of tax returns, for yourself, the business and all other owners of the business. Each owner will receive their own respective link to fill out the forms for the application. As long as all documentation is complete and submitted properly, you can expect a decision notification within one week.

Business Lending Options

	Business Vehicle	Business Equipment	Unsecured Loans	Line of Credit (Secured)	Line of Credit (Unsecured)	Business Credit Card
Maximum Loan Amount	$150,000	$150,000	$150,000	$150,000	$150,000	$50,000
Minimum Loan Amount	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000
Collateral	Consumer-Style Vehicle	Equipment, Commercial Vehicle	Unsecured	Various Types	Unsecured	Unsecured
Maximum Term	7 years	7 years	5 years	3 years	3 years	Open Ended
Maximum LTV	110%	80%	N/A	Varies	N/A	N/A

Frequently Asked Questions

Sole proprietors, limited liability companies (LLC’s), nonprofits, corporations and partnerships.

Vehicle loans, Term loans (secured and unsecured), Line of Credit and Business Credit Cards.

Secured requires collateral. Collateral can be an asset the member has in possession that can be surrendered if the loan is unpaid.

Unsecured does not require collateral.

The maximum loan amounts are:

Up to $150,000 for vehicle, equipment, unsecured and LOC's.
Up to $50,000 for a business credit card.

Please contact CU1's Member Support Center at (907) 339-9485.

LTV stands for Loan-To-Value. LTV is a ratio that compares the loan amount to the collateral’s value. It’s calculated by dividing the loan by the collateral value. For example, with an $80,000 loan and collateral that values at $100,000, the LTV would be 80% ($80,000 ÷ $100,000 = 80%).

Set up automatic payments via online banking. You can choose the minimum or a higher amount of your choice to be withdrawn from the financial institution of choice.

No, CU1 does not charge prepayment penalties. You are also welcome to make payments larger than the minimum required amount, as well as additional one-time payments at your convenience.

There is an origination fee of 1% of the loan amount/limit with a minimum of $500.
When financing equipment, there may be small UCC fees involved.
When financing a vehicle, there may be DMV registration/title fees involved.

Additional CU1 Business Options

We understand that as your business grows, so do its needs. That's why we're invested in meeting you where you are no matter what stage of the journey you're at. Whether just getting started, looking for new ways to scale or interested in investing, our local experts are here to help fit you with the tools to reach your financial goals.

Business Savings

Our accounts offer competitive rates, convenient access and robust security features, all designed to help your business thrive.

Learn More

Business Checking

Whether you're a startup or an established company, our business checking accounts offer easy access to funds and the financial tools you need.

Learn More

Investing

Investment services at Credit Union 1 include low-risk products that allow our members to plan for the future, whether in the next few years or decades.

Learn More