Utah State Small Business Credit Initiative

Program Information

Utah Program Application to Department of Treasury

Eligible Applicants:

  • Small businesses (fewer than 750 employees)
  • Businesses turned down for traditional credit resources
  • Those with an application sponsored by a participating financial institution

Loan Guarantee Program Details

  • Up to 80 percent guarantee of principal loan amount
  • Terms up to seven years
  • Target average term of three years
  • Two to Four percent guarantee fee
  • Target three percent or less true loss rate
  • Loan loss reserve fund maintained at a minimum of 10 percent of outstanding guarantees
  • Program can guarantee up to $67 million in transactions from the original allocation with fees and guarantee expirations allowing for increased obligations in the future

Loan Participation Program Details

  • Up to 80 percent purchased or primary participation in a loan transaction
  • Flexible terms and rate
  • Origination fees (to be determined)
  • Target three percent or less true loss rate
  • Program can use approximately $2.5 million in funds for participation with future fees and interest income from either program to increase lending capacity in the future

Basic Prohibitions

  • Lending on passive investments
  • Speculative activities that develop profits from fluctuations in price rather than the normal course of trade
  • Financial institutions as borrowers except Community Development Financial Institutions
  • Transactions outside of Utah
  • Lending to persons convicted of a sex offense against a minor or participating with a financial institution that has an officer who has been convicted of the same
  • Proceeds not used to refinance an existing transaction, payoff taxes owed or reimburse any owner for equity invested
  • Pyramid schemes
  • Gambling enterprises
Utah Small Business

How To Apply

Contact Us

Susan Kolthoff
SSBCI Program Specialist
Utah State Small Business Credit Initiative
801-468-0069