The tie that members of a credit union share. Federal law names two kinds, occupation and association; a community charter is defined by place instead.
A common bond is what the members of a credit union have in common. The Federal Credit Union Act names two kinds: a bond of occupation, such as working for the same employer or in the same trade, and a bond of association, such as belonging to the same organization.
A single common-bond credit union serves one group. A multiple common-bond credit union serves several groups, each with its own bond inside the group. The third federal category, the community credit union, does not rest on a common bond of this kind. Its members are the persons and organizations within a well-defined local community, neighborhood or rural district.
The bond tells a business borrower how to qualify. Under an occupational bond, eligibility usually runs through an employer, so a business owner may qualify through a past or present job, or the business may be part of a covered group. Under an associational bond, it runs through membership in the organization. Ask the credit union which route fits a business borrower and what it needs to see, because the answer differs from one charter to the next.
How it shows up in the data here
Not in this site's data. The 5300 files used here do not state a credit union's common bond or charter type. A credit union's name often hints at it, but names outlast charters, so confirm with the lender. Search credit unions by state and loan activity first, then ask each one who can join.
Go further
- Search credit unions: Every credit union row, with filters.
- Credit union business lenders: Credit unions that made commercial loans, by state.
- How to place a business loan with a credit union: Credit unions make business loans, and some make a lot of them. Three things are different from a bank: the borrower must be a member, most credit unions work under a cap on business loans, and the limit to one borrower is set against net worth.
Related terms
- Field of membership: The set of people and organizations a credit union's charter lets it serve. A borrower has to fall inside it and join before the credit union can lend.
- Credit union: A member-owned cooperative lender. It lends to the people and businesses inside its field of membership and files a call report with NCUA every quarter.
- NCUA charter number: The number NCUA uses to identify a credit union in its records and call report files. It is the surest way to tell apart credit unions with similar names.
- Member business loan (MBL): A credit union's business-purpose loan to one of its own members. The total of these loans is capped by federal law; loans to non-members are counted separately.
Sources
- 12 U.S.C. 1759, Membership, retrieved .
Plain definitions for orientation, not legal, tax or credit advice. A lender's own policy decides what it will do.