This loan is designed to encourage savings, be a financial alternative to high interest loans offered by non-bank providers, and include education for borrowers on how to improve their finances and ultimately their credit score. As such, Credit Advantage1 is available for two purposes: 1) Credit Building and 2) Purchases, Paying Bills and Other Obligations.
Purpose: Credit Building
Purpose: Purchases, Bill Payment or Other Obligations
Terms: 12, 18 or 24 months
Annual Percentage Rate (APR): 10%
Fees: None (origination or late or FL doc stamps)
Qualifying participants are eligible to receive half of the loan amount, with the other half being deposited into a CD. The term of the CD should match the term of the loan. A hold will be placed on the CD until the loan is repaid. Part of the program design is that once the loan is repaid the participant has created a savings account.
In order to receive a Credit Advantage loan with United Bank, participants will be required to complete a financial education course through Financial Focus, United Bank's online financial education platform. Financial Focus' direct link is https://unitedbank.everfi-next.net/student/dashboard/financialeducation/money-basics. Financial Focus provides an interactive financial education experience which is available 24/7 for participant ease of use. Customers are limited to three Credit Advantage loans. The loans can be concurrent as long as the borrower has completed the required financial education course, paid down the preceding loan to half of the borrowed amount, and still meets the debt-to-income requirement. Participants needing more than three loans will be required to attend additional financial education courses.
1. Loans subject to credit approval.
2. Individuals who do not have a credit score or have recently been discharged from bankruptcy are only eligible for loan up to $1,000, half of which will be deposited into a CD.
Your Gateway is here! Gateway Checking offers customers with LOW or NO credit or who have had issues managing their accounts a second chance to qualify for a checking account. With proper maintenance of the account, customers may be able to upgrade to another United Bank account after only six months!
Your Visa Classic:
The Secured Visa Classic card provides you with instant purchasing power and worldwide acceptance anywhere you see the Visa logo. Its backed by your deposit with United Bank and is an excellent way to build credit. More than 200,000 financial institutions also offer cash advance services for Visa customers.
Features & Benefits:
The New Markets Tax Credit program (NMTC) was established to spur investment into operating businesses and real estate projects in low-income communities. NMTCs were not designed to be a primary source of funding, but they can be an excellent option to fill a gap in funding for projects that make economic sense. NMTC net proceeds can fund up to 20% of a project and are paired with owner equity, borrowed funds, or other grants/public funds.
Special purpose entities called CDEs apply annually to the US Treasury Department for delegated authority to sell these federal tax credits. The proceeds from that sale are then used to fund investments, typically structured as low interest rate loans, in qualifying businesses or commercial real estate developments. The credit provided to the investor totals 39% of the cost of the investment made in the CDE and is claimed over a 7-year credit allowance period.
For more information, or to find out if your project qualifies, please contact Alex Jones at (251) 446-6017.
To be eligible for NMTCs, a potential project must generally be located in a low-income community. These areas are determined by a variety of census tract data. Click here for a map of areas that are eligible for NMTCs.
In general, businesses may not include golf courses, tanning salons or massage parlors, package liquor sales, farming (does not include agribusiness), or residential rental income that exceeds 80% of annual gross revenue.