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Given that credit unions are owned by the members (and not investors) and how do they get the initial funding they need to start.

I would think they wouldn't have members until after they are formed and to form there are costs such as building and initial salaries. I would think this would be a non-trivial amount of money.

Are my assumptions right or do I have some misunderstanding about how credit unions work? If so where do they get the initial startup capital?

I would prefer non speculative answers about how real credit unions are funded.

10

​Estimated Start-Up and Operating Costs in Chartering a Credit Union notes in part:

Given the significant costs involved, most groups seek grant money and non-member deposits (if pre-approved for the low-income designation) to help subsidize the pre-chartering costs and annual operating expenses.

Thus, in forming the union there would be the money from members and possible grants to ensure completion of the chartering process which is how one starts a CU in the US.

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