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Small Business - Frequently Asked Questions

Minority, Woman, Veteran-Owned Businesses

1. Qualifications and Types of Financing

2. Terms, Conditions, and Use of Funds

3. Payments

1. Qualifications and Types of Financing

1.1  What is a Business Diversity Lending loan?

The Union Bank Business Diversity Lending program is specifically designed to assist woman-, minority-, and/or veteran-owned businesses with their financing needs.

1.2  How do I qualify for a Business Diversity Lending loan?

A qualified borrower is any business enterprise that is at least 51 percent owned and managed by a woman, minority, and/or a veteran. The following qualifications must also be met:
  • Annual sales must not exceed $20 million
  • For certain business types, the borrower must have had the business for at least two years
  • Borrowing must be less than $2.5 million

1.3  Which minorities qualify for Business Diversity Lending financing?

Union Bank has adopted the following ethnicity and race categories as set forth in Regulation B and that also meet the Office of Management and Budget (OMB) standards first used by the Bureau of the Census in 2000:
  • Hispanic or Latino – All persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish origin.
  • American Indian or Alaskan Native – All persons having origins in any of the original peoples of North America, and who maintain cultural identification through tribal affiliation or community recognition.
  • Asian – All persons having origins in any of the original peoples of the Far East, Southeast Asia, and the Indian subcontinent. This area includes, for example, persons having origins in any of the original peoples of China, persons having origins in any of the original peoples of Japan, persons having origins in any of the original peoples of the Philippine Islands, persons having origins in any of the original peoples of the Indian subcontinent, persons having origins in any of the original peoples of the Far East including Korea, Malaysia, Cambodia, Thailand and Vietnam, and Southeast Asia.
  • Black or African American – All persons having origins in any of the Black racial groups of Africa.
  • Native Hawaiian or Other Pacific Islander – All persons having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.

1.4 How does Union Bank define a veteran?

A veteran is defined as a person who served in the active military (Army, Navy, Marine Corps, Air Force, Coast Guard; to include the National Guard, who was a member of a reserve component of the services listed, or activated National Guard unit ordered to active duty during a period of military conflict) and who were discharged or released from service under conditions other than dishonorable.

1.5 How do I apply for Business Diversity Lending financing?

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

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

1.6 What type of financing is available through Business Diversity Lending?

Through this program, Union Bank offers:
  • Lines of credit
  • Term loans
  • Single-payment loans
  • Vehicle loans
  • Savings-secured loans
  • Commercial real estate loans

1.7 What is the maximum amount of money I can borrow through the Business Diversity Lending program?

Under this program, Union Bank will finance up to $2.5 million.

Why should I choose a loan?

A loan is a good choice for larger financing needs. The term is longer, which lowers the monthly payments. Also the rate can be fixed, which allows you to budget your monthly expenditures accordingly.

1.9 Why should I choose a line of credit?

A line of credit allows you to access only as much as you need at any given time. And, as you repay the borrowed funds, that amount is automatically made available to you again for new financing needs.
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2. Terms, Conditions, and Use of Funds

2.1  What is the longest term I can get on a loan through Business Diversity Lending?

Union Bank will set a repayment plan for up to 25 years.

2.2  Is financing through Business Diversity Lending fixed or variable?

All lines of credit are variable. Loans can be either fixed or variable, depending on the loan type.

2.3  What kinds of collateral are acceptable?

As security, we will accept:
  • Accounts receivable
  • Inventory
  • Equipment
  • Union Bank Savings/time deposit accounts
  • Vehicles
  • Commercial/residential property

2.4  For what purposes can I use the funds? 

The following are common small-business purposes for financing:
  • To carry accounts receivable
  • To access short-term or permanent working capital
  • To purchase inventory or equipment
  • To get trade discounts
  • To expand a business
  • To purchase or refinance vehicles
  • To purchase or refinance commercial property
  • To make leasehold/property improvements

2.5  How long does it take to receive an answer to my loan request?

For financing up to $100,000, we can usually provide an answer within 48 hours. For financing over $100,000, allow up to five business days.

2.6  When I apply online, how do I get my loan documents to sign?

A Union Bank representative will contact you to explain your options.

2.7  Will there be any closing costs?

A Union Bank representative will inform you of any closing costs or other associated fees prior to your signing the financing documents.
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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.

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

If you do not have an outstanding balance on your line of credit, then no payments are due.
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