Do you own and operate an established business and you want to expand to your operations? Are you looking to get your first business up and running? Either way, whatever your plans may be, if you’re in need of financing and you reside in Alaska, Washington state, or parts of California or Arizona, a business loan with Alaska USA Federal Credit Union may be an option to consider.
Founded in 1948 by just 15 volunteers and originally chartered as the Alaskan Air Depot Federal Credit Union, Alaska USA was established to provide military personnel and federal employees who were stationed in Alaska before it officially became a state. The popularity of the financial institution took off, and by 1974, membership had grown to more than 20,000 employees of the companies that serviced the Trans-Alaska Pipeline System. At the same time, the credit union was granted congressional authority to provide financial services to 10 Alaska Native Regional Corporations via the Alaska Native Claims Settlement Act. In an effort to reflect its growth, in 1975, Alaskan Air Depot Federal Credit Union officially changed its name to Alaska USA Federal Credit Union.
In 1983, the institution merged with Whidbey Federal Credit Union, which was situated in Oak Harbor, Alaska, which marked its entry to the Pacific Northwest market. In 2010, Alaska USA acquired a statewide community charge in Washington state after it successfully merged with two other credit unions that were based in Seattle.
The credit union further expanded in 2009, when it acquired the High Desert Federal Credit Union in Apple Valley, California, which marked their entry to the San Bernardino County market. Alaska USAs growth continued with the subsequent acquisition of Arrowhead Credit Union and their Barstow, Big Bear, Hesperia, and Victorville, California branches in 2010.
In 2014, Alaska USA Federal Credit Union opened its first branch in the state of Arizona, in the city of Glendale. Soon after, in 2015, the financial institution was authorized by the National Credit Union Administration (NCUA) to qualify members in parts of Maricopa County that were underserved. With the acquisition of seven branches of TCF Bank in 2020, the credit union expanded further in the state of Arizona.
Alaska USA Federal Credit Union’s headquarters are located in Anchorage, Alaska, and it is chartered and regulated under the NCUA. Today, this member-owned, not-for-profit financial cooperative has more than 100 branch offices and service locations throughout the locations it services, including Alaska, Washington State, Maricopa County in Arizona and San Bernardino County in California. Currently, Alaska USA services an estimated 714,000 members and manages approximately $8.3 billion in assets.
Alaska USA Federal Credit Union is the state of Alaska’s leading provider of consumer financial services, including a wide range of business and personal loan products, credit cards, and of course, checking and savings accounts, as well as certificate and money market accounts. They’re also acclaimed for providing outstanding customer support services, which are easy to access and are available 24 hours a day, 7 days a week. Banking with the credit union is easy, as it can be done in-person at one of the more than 100 branch offices and service locations, or via online or mobile account management.
In addition to offering a wide range of financial products and services, Alaska USA Credit Union also owns and operates Alaska USA Insurance Brokers, which is situated in Alaska and Washington State, as well as Alaska USA Mortgage Company in Alaska, California, and Washington State.
“Alaska USA Credit Union has more than 70 years of experience, establishing itself as a reputable financial institution”
What does Alaska USA Credit Union Offer?
A Wide Range of Business Loans
Qualified members of Alaska USA Credit Union can apply for the wide variety of commercial loan products that the financial institution offers. Options include the following:
- Secured and unsecured term loans that can be used to purchase everything from commercial real estate and new equipment, as well as provide extra cash to have on-hand.
- Lines of credit that will provide the cash you need when you need it for things like financing the off-season needs of your business or covering the cost of operating expenses.
- Overdraft credit line, which functions as overdraft protection for your business checking account.
- Small Business Administration (SBA) loans
Flexible Borrowing Capacity
Alaska USA Credit Union offers flexible borrowing capacity with their business loans. The amount you can borrow depends on several factors, including the type of financing that you are seeking, as well as your eligibility requirements. To illustrate, for cash, equipment, and securities loans, you can borrow $2,500 or more, for commercial real estate loans, you can secure $50,000 or more, with unsecured loans, the credit union lends between $2,500 and $100,000, and for business lines of credit, you can receive a credit line that ranges between $2,500 and $250,000.
Customized Loan Products
The business loans that Alaska USA Credit Union finances are customized to meet the unique needs of each individual business. After taking key points of interest into consideration that pertain to your credit, the financial institution will work with you to design a customized loan that will provide the funding and the flexibility you require in regard to interest rates, terms, and other important conditions.
A Variety of Financial Programs
At Alaska USA Credit Union, members can take advantage of the numerous programs that the institution provides. This includes:
- Guaranteed Asset Protection (GAP), which cancels the difference between the market value of the vehicle you are purchasing and the loan balance.
- Payment protection, which is a voluntary debt cancellation program that cancels out the balance on your Alaska USA loan in the event of disability or death.
- Accidental death and dismemberment insurance, which offers coverage in the event of accidental death or dismemberment that occurs anywhere in the world, whether you’re at home, on vacation, or on the job.
- Term life insurance, which features low-cost protection and requires minimal questions related to your health, and payments are automatically deducted from your checking or savings account.
- Whole life insurance, which will provide you with lifelong coverage and premiums that never increase. This policy offers cash benefits that are payable upon death, and it builds cash over time.
Access to Personal Products and Services
In addition to being able to apply for business loans with Alaska USA Credit Union, members can also take advantage of the personal financial products that the institution provides. This includes personal checking and savings accounts, as well as personal loans and retirement accounts.
Excellent Service, Value, and Convenience
Alaska USA Credit Union has more than 70 years of experience, and in the time they have been operational, the credit union has established itself as a reputable financial institution. There are more than 67 branches located throughout the states of Alaska, Arizona, Western Washington State, and the High Desert region of California.
If you have questions, concerns, or comments, or you require assistance of any kind, Alaska USA Credit Union has a member service center, which provides live, in-person support 24 hours a day, 7 days a week. You can also utilize their UltraBranch and Alaska USA app, which can also be accessed 24 hours a day, 7 days a week. Online bill pay is available, too, which you can use to view, manage, and pay your bills, transfer funds, and a lot more. Plus, once you become a member, you and your family will be able to take advantage of life-long membership, because once you’re a member, you are always a member, and your membership qualifies your family for membership, too.
“ Alaska USA Credit Union offers a variety of credit line options to meet the unique needs of business owners”
What Type of Business Loans does Alaska USA Credit Union Offer?
Whether you need to purchase a new commercial property or make improvements to an existing property, you need to buy new equipment, or you just want the security of a line of credit, Alaska USA Federal Credit Union offers affordable and flexible financing solutions for business owners. The financial institution offers a variety of business loan products for qualified applicants. Options include the following:
If you need some spare cash during the off-season, you’d like to expand your operation by investing in a new location, or you need to purchase new equipment to power your business, a term loan from Alaska USA Credit Union can provide the financing you require. There are two options available, including secured and unsecured loans. Business and commercial loans can be secured with cash, inventory, equipment, securities, or real estate.
Financing options include the following:
- Cash, equipment, or securities loans in the amount of $2,500 or more
- Inventory loans in amounts of $5,000 or more
- Real estate loans starting at $50,000
- Unsecured loans starting at $2,500 up to $100,000
Terms for secured and unsecured loans vary according to the type of loan. Options include the following:
- Cash – varies according to the purpose you are using the cash for; however, the typical is one year
- Inventory – one year
- Equipment – seven years for new equipment and five years for used equipment
- Securities – one year
- Commercial real estate – up to 15 years and a maximum amortization of 25 years
- Unsecured – three years
- Aircraft – 15 years
- Vessels – 10 years
The details of secured and unsecured terms are as follows:
- There are no penalties for prepayment, so you can make your regular monthly payment or you can pay in full at any time.
- You can set up autopay from another Alaska USA account so that you can ensure that your loan payments are made on time.
- Depending on the type of loan you are taking out, there may be a commitment fee and third party fees. Additionally, fees for late payments are assessed for all term loans.
- For financing requests that are greater than $250,000, you will need to provide the following documentation:
- A copy of your business license, Partnership Agreement, Articles of Organization and Operating Agreement (LLC), Articles of Incorporation, and Bylaws (Corp).
- The past three years of completed business tax returns and the past two years of personal tax returns.
- The most recent year-end personal and business and financial statements, which includes a balance sheet and a profit and loss statement.
- Current interim financial statement, including a balance sheet and a profit and loss statement.
- Copies of pertinent lease contracts.
- If you are a new business owner or you are expanding your business, you will need to provide a detailed business plan, which must include your projected income and expenses for the next 12 months.
- If you are purchasing property, you must offer a copy of the earnest money agreement.
- If you are investing in or are offering real property as collateral, a legal description of the property, as well as copies of any previous appraisals and environmental reports.
Lines of Credit
Business owners can get cash when they need it with a business line of credit from Alaska USA Federal Credit Union. Lines of credit are loans that provide you with the ability to draw money when you need it, up to the approved credit limit. They are specially designed to meet short-term working capital needs.
You can use the funds provided by a business line of credit in a variety of ways. Examples include the following:
- Funding the financial needs of your business during off-peak season.
- Covering the cost of operating expenses that you can repay in the near term, or you can take advantage of pre-paid supplier discounts.
- Overdraft protection for your business checking account with Alaska USA Credit Union, and you can take advantage of three no-fee advances each month.
It’s important to note that business lines of credit should not be used to fund fixed asset acquisitions, like real estate, equipment, and leasehold improvements. Additionally, they aren’t appropriate for other expenses that only allow repayment to occur over a long period of time.
Alaska USA Credit Union offers a variety of credit line options to meet the unique needs of business owners. Options include:
- Business lines of credit can offer between $2,500 and $250,000
- If you require more than $250,000, you should apply for a commercial line of credit
- Unsecured lines of credit are available for up to $100,000, and are subject to your qualifications
The details of a credit line with Alaska USA are as follows:
- Collateral – real estate or business assets, such as accounts receivable, equipment, inventory, or cash, can be used as collateral. If you don’t have access to collateral, the credit union offers unsecured business lines of credit for up to $100,000.
- Terms – Business lines of credit are revolving, which means that you can carry a balance indefinitely (based on a yearly review). Typically, commercial lines of credit mature within 12 months, but they can be renewed each year, according to performance.
- Rates – Rates on credit lines from Alaska USA are competitive, and they vary depending on the type of credit line you are opening.
- Fees – Fees vary; however, typical fees can include commitment, annual, late charge, overdraft protection advance, and third party fees.
- Minimum advance of $100
- Minimum monthly payment – For the majority of lines of credit, borrowers must pay a minimum of the interest each month (a $25 minimum). On an unsecured line of credit that is less than $50,000, you may need to make a minimum monthly payment of $50 or 2 percent of the balance, whichever amount is greater.
- Account access – you will be able to access the funds provided by your commercial line of credit by withdrawal or transfer at any Alaska USA branch, Member Service Center, an UltraBranch, or by mail
Overdraft Credit Line
In the event that you overdraw your business checking account, a Business Overdraft Credit Line will provide you with the financial protection you need. The funds that are needed will be transferred from your Business Overdraft Credit Line if it’s ever needed.
A Business Overdraft Credit Line offers the following benefits:
- Protection for your business checking account
- Save money on Non-Sufficient Funds (NSF) fees, as well as extra merchant charges for returned checks
- Peace of mind knowing that the payments you make from your checking account will always be covered
- Saving face in the event of a situation that has the potential to cause embarrassment
Business Overdraft Credit Lines are different from other types of overdraft protection. These differences include the following:
- Can only be applied to business checking accounts
- Rates differ from other types of credit lines that Alaska USA Credit Union offers
- You are responsible for overdrafts that are made by any user who is listed on the account
The details of a Business Overdraft Credit Line from Alaska USA Credit Union are as follows:
- Available credit – this credit line is unsecured and are available between $2,500 and $10,000
- Terms – A business overdraft credit line is a revolving line of credit, allowing you to carry a balance indefinitely, subject to annual review
- Rates – the rate is Prime plus 6 and the floor is 7 percent
- Annual fees – It doesn’t matter if you use the credit line or not, a nonrefundable fee of 1 percent to 3 percent of the credit limit will be charged to the borrower’s credit
- Minimum transfer of $100
- Minimum monthly payment of $50 or 2 percent of the balance, whichever is greater
- Notification of transfer – whenever overdraft protection has been activated, the credit union will send you a notice via the mail. You can also keep track of your account anytime via UltraBranch
- Qualifications – in order to qualify for a business overdraft credit line with Alaska USA, your business must be in operation and be making a profit for the past three years. You must also have a qualifying credit score.
Alaska USA Credit Union also issues loans that are funded via the US federal government through the Small Business Administration (SBA). The credit union offers several SBA loan programs that are intended to address the varying and unique needs of small business owners, including:
- 7 (a) loan program, which offers long-term financing for real estate acquisitions, building construction, renovation or expansion, machinery and equipment purchases, inventory purchases, and working capital. The minimum amount is $50,000.
- 504 loan program, which provides long-term fixed asset financing for the acquisition, construction, expansion, or renovation of physical land and buildings, or for the purchase of long-life equipment. The minimum amount is $250,000.
- Express loan program, which is available for loans between $25,000 and $350,000.
Letters of Credit
Alaska USA Credit Union can assist you with building relationships with new vendors and can ensure prompt payments by utilizing a convenient letter of credit. Letters of credit function as guarantees that vendors you’re working with will receive the money they are owed. You simply apply to Alaska USA for a letter of credit, using cash, real estate, or other business assets as collateral. Once approved, the credit union will draw up an official letter of credit that will highlight the specific amount the vendor guarantees. If it turns out that you are not able to pay the vendor, Alaska USA Credit Union will be obligated to repay the amount, and you will be required to make payments on the amount that the credit union paid the vendor.
Letters of credit are available in amounts of $2,000 or more. Two options are available:
- Standby letters of credit, which functions as assurance to vendors that your business will be able to meet contractual obligations. They’re only used as backup in the event that you are unable to make the payment.
- Commercial letters of credit assist with the facilitation of trading activity between your business and other businesses by offering a payment mechanism that’s convenient for both parties.
Who Should Apply for a Business Loan from Alaska USA Credit Union?
Only members of Alaska USA can apply for a business loan. If you reside in one of the following areas, you are eligible to apply for membership:
- Washington State
- San Bernardino County, California
- Maricopa County, Arizona
You can apply for membership in-person at one of the credit union’s branch locations, or online, via the Alaska USA website.