Business Solutions Membership & Application Documentation

Are there any deposit requirements for membership?

A deposit of $100 for sole proprietorships and $105 for all separate legal entities, such as limited liability companies and corporations, is required at the time of opening.

What documents do I need to submit with my application?

Business Solutions requires certain business-governance documents (the operational rules) for your business. The documents required—and what goes in them—will vary based on the structure of your business and any applicable state and local requirements. Consulting with business counselors, attorneys and accountants can prove helpful.

The documents required vary by business type:

  • Sole Proprietorship
    • Business License
    • Federal Tax ID Number (TIN) Letter
    • Fictitious Name Certificate or Certificate of Assumed Name (if applicable)
  • Partnership (Applies to Limited Partnership (LP), Limited Liability Partnership (LLP) and Professional Limited Liability Partnership (PLLP))
    • Partnership Agreement (or Limited Partnership Agreement)
    • Federal Tax ID Number (TIN) Letter
    • Beneficial Owner Form
    • Fictitious Name Certificate or Certificate of Assumed Name (if applicable)
  • Corporation
  • Single Member LLC
    • Articles of Organization
    • Operating Agreement
    • Beneficial Owner Form
    • Fictitious Name Certificate or Certificate of Assumed Name (if applicable)
  • Multi-Member LLC
    • Articles of Organization
    • Operating Agreement
    • Beneficial Owner Form
    • Fictitious Name Certificate or Certificate of Assumed Name (if applicable)
    • The Small Business Administration offers additional resources and guidance you may find helpful.

      What is a beneficial owner?

      A beneficial owner is any individual who directly or indirectly owns 25% or more of a business entity, and one individual with significant responsibility for controlling or managing the entity.

      Why is beneficial owner information collected?

      This information is collected to help the government fight financial crime. Federal regulation requires certain financial institutions to obtain, verify and record information about the beneficial owners of legal entity customers.

      How does Navy Federal collect this information?

      Legal entity businesses complete and sign the Certification Regarding Beneficial Owners of Legal Entity Customers (NFCU 98) form as part of the application submission package.

      When is a beneficial owner form required for application with Navy Federal Business Solutions?

      Beneficial owner information must be collected whenever a business entity requests to open a new membership, deposit or credit account and when there is a change in ownership. To confirm the status of previously submitted beneficial owner information, call 1-877-418-1462, 8 am to 7 pm ET, Monday through Friday to speak with a business representative.

      What types of business entities are required to provide beneficial owner information?

      Legal entities must provide beneficial owner information when opening or applying for a new business account. Legal entities include corporations, limited liability companies, limited partnerships, general partnerships, business trusts or any other entity created by a filing with a state office.

      Are sole proprietors required to submit beneficial owner information?

      No, sole proprietors are not legal entities and therefore not required to submit beneficial owner information.

      What is a fictitious name certificate or certificate of assumed name, and where can I obtain a copy of mine?

      States and localities may require the filing of a certificate to register a “doing business as” (DBA) name—also known as a trade name, fictitious name or assumed name.

      The secretary of state, county clerk or city hall where your DBA name was registered is often a good starting point for obtaining copies of your documents.

      What is a partnership agreement, and where can I obtain a copy of mine?

      A partnership agreement is an internally binding document between all partners that defines how business decisions get made and each partner's duties, powers and responsibilities.

      The secretary of state or the administrative offices of the locality in which your business was formed is often a good starting point for obtaining copies of your partnership agreement.

      What are articles of incorporation, and where can I obtain a copy of mine?

      The articles of incorporation—or a certificate of incorporation—is a document that lays out the basic outline of a corporation. Articles of incorporation commonly include the company name, business purpose, number of shares offered, value of shares, directors and officers.

      The secretary of state of the state in which your business was incorporated is often a good starting point for obtaining copies of your articles of incorporation.

      What are corporate bylaws, and where can I obtain a copy of mine?

      Bylaws are the internal governance documents of a corporation. They define how key business decisions are made, as well as officer and shareholders' duties, powers and responsibilities.

      Similar to the articles of incorporation, copies of corporate bylaws can often be obtained from the secretary of state of the state in which your business was incorporated.

      What are articles of organization, and where can I obtain a copy of mine?

      Articles of organization are documents that describe the basics of an LLC. Articles of organization often include business information like the company name, address, member names and registered agent.

      The secretary of state of the state in which your business was formed is often a good starting point for obtaining copies of your articles of organization.

      What is an operating agreement, and where can I obtain a copy of mine?

      An operating agreement describes the structure of an LLC’s financial and functional decisions. It defines how key business decisions are made, as well as each member’s duties, powers and responsibilities.

      The secretary of state of the state in which your business was formed is often a good starting point for obtaining copies of your operating agreement.

      What is a NAICS code, and how do we find it?

      The North American Industry Classification System (NAICS) is the standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy. NAICS groups industries into 20 broad sectors that are identified by a 6-digit code.

      NAICS codes can be found online.

      What is an EIN (Employer Identification Number), and where do I obtain a copy of my mine?

      An Employer Identification Number (EIN) is also known as a federal tax identification number and is used to identify a business entity. Go to www.IRS.gov and search “Misplace Your EIN” or call 1-800-829-4933.

Business Credit Cards

What do I need to apply for a business credit card?

To apply for a business credit card, you need a completed, signed and initialed business credit application.

What determines my interest rate?

Rates are risk-based and determined after an evaluation of relevant credit histories.1

What are the minimum and maximum limits for a Navy Federal business credit card?

The minimum credit limit is $5,000; the maximum is $25,000. Credit limits are determined during the underwriting process.

Is there an annual fee for a Navy Federal business credit card?

No, there is no annual fee for our business credit cards.2

Can I take a cash advance on my credit card?

Yes, you can take a cash advance of up to 50% of your approved credit limit.

Is there a fee for cash advances?

No, there is no fee for cash advances, but interest starts accruing immediately.3

Can I obtain credit cards for my employees?

Yes, you can obtain credit cards for your employees.

How do I obtain convenience checks?

To get convenience checks, call 1-888-842-6328.

Will my personal credit be checked when I apply for a business credit card?

Personal credit scores are taken into consideration during the decision process. The underwriting process includes an evaluation of relevant credit histories including, potentially, the credit history of the business entity, individual owner(s) and/or guarantor(s).

Business Loans

Can I apply online for a business loan?

For requests of up to $50,000, you may submit your loan application through our online Secure Document Upload. Requests greater than $50,000 must be discussed with a lending representative who will go over the requirements and application process.

Can I get preapproved for a loan?

At this time, Navy Federal does not offer preapprovals for any of our business loans, credit cards or lines of credit. All requests go through our business underwriting process, which, if approved, determines the credit amount, interest rate and term of the loan.

Does Navy Federal fund new businesses?

In general, we do not provide unsecured start-up loans. However, when a business owner has excellent credit and strong personal cash flow to sustain existing obligations and the new request, we can consider an unsecured loan such as a term loan not to exceed $25,000 or checking line of credit not to exceed $5,000.

In addition to a completed and signed business credit application, we require 2 years of personal tax returns, a business plan with 3 years of cash flow projections and a personal financial statement to start the application process.

What is considered a new or “start-up” business?

A start-up business is one that has been in business for less than 2 years.

Does Navy Federal work with the Small Business Administration (SBA)?

Yes, SBA guarantees may be an option for working capital, business expansion, franchise expansion and select start-up situations. They can be great for conserving business liquidity by allowing higher loan to value (LTV) for large equipment or similar purchases.

Does my business need to be a Navy Federal Business Solutions member to apply for business financing?

Yes, a business needs to become a Business Solutions member prior to applying for a loan. For the business to be eligible for a business membership, all business owners must be current Navy Federal members in good standing.

What determines my interest rate?

Rates are risk-based, and we consider the Five Cs of Credit (capital, character, capacity, collateral, conditions) with all our loan decisions.

What determines the line amount for a Checking Line of Credit (CLOC)?

The line amount is based on creditworthiness.

Is my personal credit checked when I apply for a business loan?

Yes, personal credit scores are taken into consideration during the decision process.

Does Navy Federal offer term loans secured by cash or certificates of deposit?

Yes. Loans secured by certificates of deposit have a fixed margin of 3% over the current certificate rate. Cash-secured loans have an interest rate determined by our underwriting process.

May I add a guarantor to my lending request?

Guarantors may be added, but the guarantor must be a member of Navy Federal.

How long does it take to make a decision on my loan request?

Once all the required information has been submitted, it can take up to 5 business days to review and approve or decline most lending requests.

Does Navy Federal offer unsecured term loans for businesses?

Yes, we do offer unsecured term loans for business and they are considered using a higher underwriting standard.

What is an aging report?

An aging report is a list of debts owed to a company by its customers (A/R) or a list of debts owed from a company to its vendors (A/P), and how long it has been since the invoice was generated but still unpaid. Aging reports can provide insight into a company’s cash flow situation.

What is a rent roll?

A rent roll is a list of a property’s current tenants and how much they pay in rent. It can include additional information such as expenses paid by tenants, utilities and lease lengths.

At any time during the year, must the balance of the business line of credit be at zero?

There may be an annual clean-up period that requires the loan’s outstanding principal to be $0 for a period of no less than 30 days. Your business lending officer can provide additional details.

What is a Purchase/Buyer's Order for a vehicle loan?

A Purchase or Buyer’s Order is a contract containing terms upon which the buyer and seller have agreed. It contains the price of the vehicle, information about the buyer and the dealership selling the vehicle, and other related information. This must be signed by both the buyer and seller.

What is a Bill of Sale for a vehicle loan?

A Bill of Sale is a document that verifies the vehicle is being sold and provides information about the vehicle and the terms of the sale. It must include the date of the sale, vehicle year, make and model, VIN, and current mileage. This must be signed by both the buyer and seller.

What is a Sales Contract for a vehicle loan?

A Sales Contract is a contract that verifies the vehicle is being sold and provides information about the vehicle and terms of the sale. It must include the date of the sale, vehicle year, make and model, VIN, and current mileage. This must be signed by both the buyer and seller.

Will insurance be required if approved for a vehicle loan?

Yes, proof of vehicle insurance will be required prior to closing on the loan. The proof of insurance must show the vehicle is insured in the business name with Navy Federal Credit Union as Loss Payee. The address that must be used for Navy Federal Credit Union is: 820 Follin Lane, Vienna, VA 22180.

Will insurance be required if my secured term loan is approved?

All approved vehicle loans require proof of insurance. For approved term loans secured by collateral other than a vehicle, insurance will be required for loans exceeding $35,000. The type of insurance will vary, and instructions on insurance requirements will be provided during the closing process.

What is a UCC filing, and when is it required?

A Uniform Commercial Code (UCC) lien filing, or UCC filing, is a lien lenders file to stake a claim in a borrower’s assets in the event of default.

Disclosures

1 Your interest rate, expressed as an annual percentage rate (APR), is determined by adding a margin to The Wall Street Journal Prime Rate. Your margin is a percentage amount that we determine based on an evaluation of relevant credit histories (including, potentially, the credit history of the business entity, individual owner(s) and/or guarantor(s), or a combination). Your APR will vary based on the Prime Rate and it could increase if the Prime Rate increases or decrease if the Prime Rate decreases. An increase of decrease in your APR will affect the total amount of interest you pay. The variable rate is adjusted quarterly using the highest Prime Rate published in The Wall Street Journal on the first day of the quarter (January 1, April 1, July 1, October 1). Adjustments to the variable rate will be made on the first business day of the following month. Your initial APR will be determined at the time your business credit card account is established and will use the Prime Rate in effect as of the first business day of the month following the last quarterly adjustment.

2 As of 11/1/2019, rates range from 10.9% APR to 18% APR, are based on creditworthiness, and will vary with the market based on The Wall Street Journal Prime Rate. ATM cash advance fees: None if performed at a Navy Federal branch or ATM. Otherwise, $0.50 per domestic transaction or $1.00 per foreign transaction.

3 For additional information, review the Business Credit Card Agreement and Disclosure.