Small Business Loan

Small Business Loan is a loan facility extended to qualified Small and Medium Enterprises (SMEs) for additional working capital, plant/business expansion, fixed asset acquisition, and other business-related expenditures or investment requirements.

BORROWER’S ELIGIBILITY:

  • Must be a single proprietorship, partnership or corporation with at least 3 years of profitable operations
  • For single proprietorship, principal borrower must not be over 60 years old upon loan maturity
  • Not in “Caution List”
  • No derogatory records per NFIS/ CMAP/bank checking

FEATURES:

Loan Amount Minimum of P500K up to P5.0M based on 40% up to 80% of Appraised Value of property being acquired/mortgage *Subject to property appraisal
Interest Rate Prevailing interest at time of availment
Type PN Line Term Loan
Revolving for one (1) year Minimum of two (2) years
Minimum PN Term -360 days Maximum of five (5) years
Repayment Advance Monthly interest payment and; principal full payment at maturity with option for rollover at minimum 10% partial payment Equal monthly amortization of Principal Plus Interest or Monthly/Quarterly interest payment
Mode of Payment Via submission Automatic Debit Arrangement (ADA) on client deposit account with USB
Acceptable Collateral Residential or commercial properties provided they are:

  1. Acceptable under existing CAID guidelines
  2. Located within the 50 km. radius of any USB/UCPB branch.
  3. Properties beyond the 50km radius may be accepted provided it is fully developed and with existing community as verified by CAID
  4. Collateral under third party REM provided relationship with borrower has been established, and will sign as accommodation mortgagor in
    REM documents.
Other Charges 1. Appraisal Fee – Php 5k / TCT/Location
– Within 50 kms radius Php 6k / TCT/Location – More than 50 kms radius
Note: If the client has more than one title located in the same subdivision or barangay an additional of P 1,500/title/client shall be charged.2. Processing Fee, Handling and Filing fee upon loan release

Customer’s Benefits:

  • Convenience – loans are processed at the earliest possible time
  • Affordability – interest rates are low and payment terms are comfortable and easy on the budget
  • Fast Service – efficient staff will promptly answer questions and offer assistance with a personalized touch

BASIC AND INCOME DOCUMENTS

DOCUMENTS SOLE PROPRIETORSHIP PARTNERSHIP CORPORATION
Fully accomplished and signed application form with data privacy consent ✓ ✓ ✓
Copy of at least 2 valid ID with specimen signature ✓ ✓ ✓
Photocopy of last 3 years Audited Financial Statements (AFS) with ITR And Latest In-House Financial Statements (if necessary) ✓ ✓ ✓
Bank SOA or photocopy of passbook for the last 3 months ✓ ✓ ✓
Business Background/ Company Profile ✓ ✓ ✓
List of at least 3 Major Suppliers and Customers ✓ ✓ ✓
Marriage Contract
(if applicable)		 ✓
Certificate of Business Registration /Trade Name with DTI ✓
Articles of Incorporation or Partnership (and amendments, if any) ✓ ✓
SEC Registration; Latest General Information Sheet and By-Laws (and amendments, if any) ✓

COLLATERAL AND SUPPORT DOCUMENTS

  • Photocopy of Title
  • Lot plan with vicinity map

If loan is for construction / renovation
– Bill of materials
– Building plans and specifications

  • Latest Tax declaration
  • Special Power of Attorney (SPA), if applicable


ADDITIONAL REQUIREMENTS:

Insurance requirements
* Fire insurance coverage on the improvement equivalent to its appraised value.
* Mortgage Redemption Insurance (MRI) or Life Insurance endorsed by the borrower to USB which shall guarantee the payment of the outstanding real estate loan in case of death of the principal borrower before the maturity of the loan.

Note:
1. Annual premium payments shall be paid by the borrower.
2. Other supporting documents maybe require during loan evaluation