Form CRS: Client Relationship Summary

Date: June 30, 2023

Name: Urban Financial Advisory Corporation

Item 1. Introduction

Urban Financial Advisory Corporation (UFAC) is registered with the Securities and Exchange Commission (SEC) as an investment adviser. Brokerage and investment advisory services and fees differ and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at www.investor.gov/CRS, which also provides educational materials about broker- dealers, investment advisers, and investing.

Item 2. What investment services and advice can you provide me?

UFAC offers financial planning, investment advisory, tax compliance, tax and estate planning, and related services to retail investors. Financial planning involves discussions of your objectives and collection of data necessary to prepare personalized integrated financial projections of cash flow and net worth. The integrated financial projections serve as the basis for developing a suggested investment policy. Should you determine to utilize UFAC for investment advisory services, which involves implementation and monitoring of the investment policy suggested, we would provide you an investment policy statement and an investment advisory agreement. Upon execution of these documents, you would establish accounts over which UFAC would have a limited discretionary trading authorization. This discretionary trading authority allows us to select and identify the amount and type of securities to be bought or sold within the accounts of your portfolio. The terms and provisions of the investment advisory agreement and investment policy statement also guide the discretionary trading authorization. Any investment guidelines and/or restrictions will generally be provided in writing and would be defined within the investment policy statement. Once the accounts are established and funded, UFAC would engage in deployment of the funds within the accounts pursuant to the terms of the investment policy. On a quarterly basis, most clients are provided a detailed performance report of their portfolio. Further, the quarterly portfolio report also discusses the economic environment as well as provides a detailed explanation of any suggested changes to be made within the portfolio. UFAC considers the quarterly performance report as an ongoing update to the investment policy. Additionally, integrated financial projections are periodically updated to confirm the adequacy of the investment policy.

For additional information:

Please see Items 4, 7, 8 and 13 of our, Form ADV, Part 2A brochure, which may be accessed directly at https://static1.squarespace.com/static/5734b34ee707eb8c6d52bbf9/t/6514249e3b07fe013360ecf4/1695818910581/Form+ADV+Part+2A+-+2023.pdf f

Questions to Ask Us:

Given my financial situation, should I choose an investment advisory service? Why or why not?
How will you choose investments to recommend to me?
What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

Item 3(a). What fees will I pay?

Initial financial planning engagements are based on a pre-determined flat fee and there is no minimum account size necessary to engage us to provide financial planning services. UFAC is compensated for investment advisory services generally based on a percentage of assets under discretionary management. You pay a fee to UFAC on a quarterly basis for services based upon the quarter end value of the accounts (less agreed upon exclusions) in the amount of 8.75 basis points (.0875%) on the first $1,000,000, 7.5 basis points (.075%) on the next $1,000,000, 6.25 basis points (.0625%) on the next $1,000,000, 5 basis points (.05%) on the next $1,000,000, and 3.75 basis points (.0375%) on amounts above $4,000,000, generally subject to a minimum of $875 per quarter. The first period of invoicing may include an establishment fee, which generally is $750. The investment advisory fee structure includes the provision of financial planning services necessary to maintain the investment policy of the portfolio. You may elect to be billed directly for fees or you may authorize UFAC to directly debit the fees from your account(s). Time charges associated with extraordinary financial planning not necessary to the maintenance of the investment policy, including income tax planning and compliance, estate planning, and similar services, shall be separately billed at currently prevailing hourly rates of UFAC firm personnel currently ranging from $90 to $400 per hour depending on the provider of these services. On occasion, a flat management fee may be negotiated, but this is usually in cases where more limited reporting services are required. In addition, some clients with older investment advisory contracts have lower rates and fees. Our investment advisory fee structure is asset based and thus, the more assets there are in a retail investor’s account, the more a retail investor will pay in fees, and UFAC may therefore, have an incentive to encourage the retail investor to increase the assets in his or her account and/or increase the value of the assets in his or her account. Our investment advisory fees are exclusive of brokerage commissions, transactions fees and other related costs and expenses that you may incur.

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

For additional information:

Please see Items 5 and 7 of our Form ADV, Part 2A brochure, which may be accessed directly at https://static1.squarespace.com/static/5734b34ee707eb8c6d52bbf9/t/6514249e3b07fe013360ecf4/1695818910581/Form+ADV+Part+2A+-+2023.pdf

Questions to Ask Us:

Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

Item 3(b). What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?

When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means. [JS1]

UFAC’s revenue is from the fees we collect from investment advisory services and extraordinary services including income tax planning and compliance, estate planning, and related services. The extraordinary services we suggest are based upon the requirements of our clients from information we learn through the development and maintenance of their financial plan and investment policy. The client is provided a detailed description and an estimate of the costs of any such extraordinary service to be provided before any work is performed. The client is under no obligation to retain us for any extraordinary service that we may offer. Steven D. Urban, President of UFAC, is a licensed attorney in the State of Illinois and may provide legal services to UFAC clients through his attorney at law practice. This may be perceived as a potential conflict of interest and these services are provided separately from any investment advisory services or financial planning services of UFAC. UFAC does not receive any commissions, loads or referral fees on any investment service or product. Although the firm may perform due diligence or consulting on various types of financial products such as insurance or annuities, the firm does not offer or sell any such products. UFAC employees may from time to time buy or sell securities for themselves that are also recommended to you. Due to the relative size and type of UFAC and client purchases and sales, as well as the fact that generally only mutual funds and exchange-traded funds are involved, no restrictions or internal procedures are used for such transactions.

Questions to Ask Us:

How might your conflicts of interest affect me, and how will you address them?

For additional information:

Please see Items 5, 10 and 11 of our Form ADV, Part 2A brochure, which may be accessed directly at https://static1.squarespace.com/static/5734b34ee707eb8c6d52bbf9/t/6514249e3b07fe013360ecf4/1695818910581/Form+ADV+Part+2A+-+2023.pdf

Item 3(c). How do your financial professionals make money?

The firm’s financial professionals are paid salary and bonus based on their work performance. UFAC does not directly or indirectly compensate any person for client referrals. In addition, UFAC does not compensate directly or indirectly any person in cash nor does any person receive any other economic benefit (including commissions, sales awards, equipment, or non-research services) from non-clients in connection with the provision of any services to you.

Item 4. Do your financial professionals have legal or disciplinary history?

No, our firm and/or financial professionals have not been a party to or involved in any legal actions or disciplinary events.

Visit www.investor.gov/CRS for a free and simple search tool to research our firm and our financial professionals.

Questions to Ask Us:

As a financial professional, do you have any disciplinary history? For what type of conduct?

Item 5. Additional Information

Additional information about our services is available on the SEC’s website at www.adviserinfo.sec.gov by selecting FIRM and searching CRD #110057 in zip code 60601 and on our website at www.ufinadv.com. If you would like additional, up-to-date information or a copy of this disclosure, please call 312-379-0150 or send email to info@ufinadv.com.

Questions to Ask Us:

Who is my primary contact person?
Is he or she a representative of an investment-adviser or a broker-dealer?
Whom can I talk to if I have concerns about how this person is treating me?