How Do I Start A Credit Union?
Credit unions need a charter — a license to operate — from either the National Credit Union Administration or a state credit union regulator. The federal government and state governments have different chartering rules and requirements.
Credit unions are cooperatives, meaning they are member-owned and operated. A federally chartered credit union is a great way to provide affordable financial services to people where you work or worship, members of an association where you belong, or people in your community. Federally chartered credit unions must have an NCUA-approved field of membership, which is the legal description of the persons, organizations, and other entities the credit union will serve.
Before submitting a full charter application, you must work with NCUA to obtain preliminary approval for your field of membership. Once NCUA grants this preapproval, you may proceed with completing and submitting the full charter application.
Review the Chartering and Field of Membership Manual as well as our Federal Credit Union Charter Application Guide to help you understand the chartering process and follow best practices for submitting an application.
This chart summarizes that process:
Chartering Application Guide Flowchart
Phase 1 – Establishing a Field of Membership
During this phase you will:
- Research chartering a federal credit union
- Define the desired field of membership
- Describe capital funding plans
- Provide two credit union name choices
- Complete the Phase 1 form submission
NCUA Review Goal: 60 Days
Phase 2 – New Charter Application
During this phase you will:
- Complete pre-planning
- Identify Subscribers
- Conduct a potential member survey and analyze the results
- Analyze market conditions
- Secure donated capital
- Obtain evidence of critical sponsor commitments
- Secure mentor relationships
- Develop your business plan
- Submit NCUA form 4001
- Create a mission statement
- Determine products and services
- Establish organizational and management plans
- Identify the credit union’s physical location
- Create pro forma financial statements and plans for operating independently
- Describe your marketing plans
- Create proposed bylaws
- Prepare all required policies, including those for major operational areas or advanced services
If NCUA finds the information you submit with the Phase 1 Field of Membership form or new charter application is incomplete or insufficient, we may defer or deny your application. Learn more about NCUA’s Deferral Process.
Phase 3 – Final NCUA Approval
During this phase you will:
- Submit all remaining NCUA forms
- NCUA 4008 - Organization Certificate
- NCUA 9500 - Application and Agreements for Insurance of Accounts
- NCUA 9501 - Certification of Resolutions
- NCUA 4012 forms not previously submitted and approved
- Sign the Letter of Understanding and Agreement with NCUA
- Receive your charter and share insurance coverage
NCUA Review Goal: 180 days from receipt of a complete application in Phase 2 to charter issuance
How Do I Submit My Phase 1 Form?
You can begin the process of applying for a federal credit union by completing the Phase 1 form and submitting it online. Access the CAPRIS system here.
Once you submit the Phase 1 form, an NCUA coordinator will be assigned to work with you throughout the chartering process.
Please contact NCUA’s Office of Credit Union Resources and Expansion (CURE) at 703.518.1150 or NewFCU@ncua.gov for guidance on starting a new federal credit union. A CURE staff member can walk you through the phased approach for starting a credit union and answer your questions about your specific proposed federal credit union.
Additional Chartering Resources
Pro-Forma Financial Statement Projections Template
Pro-Forma Financial Statement Projection Assumptions