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Small Business - Frequently Asked Questions

Business Financing

1. Qualifications and Types of Financing

2. Terms, Collateral, and Use of Funds

3. Payments

1. Qualifications and Types of Financing

1.1 How do I apply?

For financing of $100,000 or less, you can apply online, apply by phone at1-866-UB-LOANS, or obtain an application from the nearest Union Bank branch. For financing over $100,000, stop by the nearest branch for an application.

1.2 What types of financing does Union Bank offer?

Union Bank offers lines of credit, term loans, single-payment loans, vehicle loans, savings-secured loans, commercial real estate loans, equipment leasing, and Letters of Credit.

1.3 What documentation do I need to provide when applying for small business financing?

For credit requests between $10,000 and $100,000, simply call 1-866-UB-LOANS to apply by telephone. Additional financial information and documentation may be required.

For credit requests over $100,000, stop by the nearest Union Bank branch for an application. Additional financial information and documentation will be required.

1.4 How can I determine whether a loan or line of credit is best for my financing needs?

Typically, a loan is used for financing long-term needs such as equipment purchases. The term is longer, which lowers your monthly payment, and the rate can be fixed to simplify the monthly budgeting process.

A line of credit is usually used for short-term needs,such as working capital. The advantage of having a line is that the principal amount repaid is then again made available for other cash needs, without requiring additional credit approval.

A flexible solution, Business OptionsLineSM is a line of credit that allows you to convert some or all of your outstanding balance to a fixed-rate, fixed-term loan.You can decide when it's best to convert an outstanding balance to a fixed-term loan and lock in a fixed interest rate and monthly payment that fit your budget.1

1.5 What is a Small Business Administration (SBA) loan?

Union Bank partners with the SBA, a federal agency, to provide financing to small businesses that might not otherwise qualify for a conventional bank loan.
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2. Terms, Collateral, and Use of Funds

2.1  Are Union Bank's small business financing rates fixed or variable?

Our loans can have either fixed or variable rates, depending on the loan type. Our traditional lines of credit have variable rates. Business OptionsLine has variable rates with the option to convert to a fixed-rate loan.

2.2  Are Union Bank's small business financing options secured or unsecured?

Our loans can be either secured or unsecured. Traditional lines of credit can be unsecured or savings secured. Business OptionsLine can be unsecured, UCC secured, or real estate secured by commercial or residential property.

2.3  What types of collateral are acceptable?

Union Bank will use accounts receivable, inventory, equipment, savings/time deposit accounts, vehicles, and commercial/residential property as security.

2.4  How can I use the funds?

Your use of the funds is not restricted as long as you use them for a business purpose. The following are common small business purposes for financing: carry accounts receivable, short-term or permanent working capital, seasonal purchases, inventory, trade discounts, equipment, tenant improvements, business expansion, vehicle purchase or refinance, commercial property purchase or refinance, and leasehold/property improvements.

2.5  How does Union Bank disburse the funds?

When we approve you for a loan, you can instruct the bank representative to deposit the funds directly into your Union Bank account, make a check payable to a third party, or pay you directly.

You can access your line of credit by simply writing a check or going online with Internet Business Banking or Commercial Loans on the Web.

2.6  How long will it take to get a response to my financing request?

When applying for amounts up to $100,000, you can usually expect a response within 48 hours. When applying for amounts in excess of $100,000, you should usually allow up to five business days.

2.7  If I apply online, how do I get my loan documents?

When we approve your request, a bank representative will contact you with your options.
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3. Payments

3.1  How do I make payments?

To simplify the process for you, Union Bank will automatically debit your Union Bank checking or savings account monthly for the appropriate payment amount. You can authorize additional payments online with Internet Business Banking or Commercial Loans on the Web.

3.2  If the balance on my line of credit is $0, are any payments required?

If you do not have an outstanding balance on your line of credit, then no payments are due. The minimum monthly finance charge of $100 is required only when you have an outstanding balance.
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