I agree, I cannot really add much to Uncle Bob's eloquent thoughts other than in my experience a specialized credit union is formed to serve a localized group, like educators in a metro, people who work at a specific business, and similar groups where a credit union is incorporated (under the laws of one state). This Hot Rodder's "group" is widespread, not even limited by the political boundaries of a specific country. Aside from the potential of projects going astray, I don't think that the multi-state approach works with a credit union. You'd really need bunches of independent shops, serving areas with enough clients to first save enough money to have assets to loan and then to loan it prudently.