USBCI - MoFi

USBCI LPP PROGRAM

Offer Your Clients 0.5-3.0% Interest Rate

Call us to find out if your deal is eligible in just 5 minutes.

Why Choose the Small Business Credit Initiative’s Loan Participation Program (LPP)?

This program provides the best interest rates available right now. It also:

Acts as a risk partner
Reduces exposure
Increases debt service
Keeps your clients happy

Ensure your loan qualifies for the USBCI with our quick eligibility checklist.

This loan is for a Utah business
This loan will be fully collateralized
Owner occupancy requirements:
- 51% for renovation or purchase of existing real estate
- 60% for new construction
This loan does not include refinance, blue sky or goodwill or payment of taxes
The borrower and all owners of 20% or more have positive net worth

How the Program Works

Lender pre-flights deal with MoFi. Lender gets approval on loan from their bank with USBCI in structure. USBCI will be participating in a loan you originate.
MoFi prepares application package.
MoFi submits loan to state for approval.
State issues Commitment Letter agreeing to fund loan.
Lender closes loan.
Lender submits documentation required in Commitment Letter & MoFi funds participation.
Each month, lender remits SSBCI portion of payment & participation report to MoFi.

What Bankers Are Saying

Being able to offer lower interest rates to growing and expanding businesses, especially in a high interest environment, has been super helpful. The process is really simple. Working with MoFi is so easy, they are always there. It’s an easy program to navigate that’s not cumbersome and is smooth for the clients.

Frequently Asked Questions

What do we need after we have a 5-minute call?

Draft Credit Memo, once we’ve reviewed that we need:

Our online form filled out by lender
Final Credit memo
Final approval

How is the interest rate determined?

The interest rate on the USBCI participation portion is fixed and based on the amortization of the loan. However, the lender uses their standard rate and it can adjust. Term and amortization are limited to 20 years.

Amortization	Rate
0 – 35 months	.50%
36 – 59 months	1.0%
60 – 83 months	1.5%
84 – 119 months	2.0%
120 – 179 months	2.5%
180 – 240 months	3.0%

What are the fees?

There are no additional fees for clients on top of your standard fees. As the lender, you can choose to add up to .50% to the interest rate of the USBCI portion to cover your costs of servicing the loan.

Does the borrower have to be underserved?

No, this program is open to all Utah businesses.

Are non-profits eligible?

Yes!

Is there a down payment or LTV requirement?

Not for USBCI. It can go up to 100% LTV.

How large can the loan be?

The USBCI participation can be up to $3,000,000 or 50%, whichever is smaller. There is no minimum loan size.

How do loan documents work?

You use your standard loan documents, with a couple of updates. We will work closely with your loan document and compliance team to make these updates. There is only one set of loan documents.

How does collateral work?

The lender files the appropriate security documents. The lender and MoFi will sign a participation agreement that will govern the collateral in the event of a work-out scenario. The lender and MoFi will split the recovery in proportion with the ratio of the participation (ex. 50/50).