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Launching Utah’s Federal Small Business Credit Initiative

Kaitlyn ClarkeCenter for Rural Development, USBCI

The Governor’s Office of Economic Opportunity (Go Utah) recently announced the launch of the State Small Business Credit Initiative program (SSBCI) that will expand access to capital, promote economic resiliency, create new jobs, and increase economic opportunity in Utah. The program helps develop opportunities in underserved communities lacking capital and builds financing ecosystems that support entrepreneurs and small businesses.  

The American Rescue Plan Act of 2021 reauthorizes and expands the SSBCI program. SSBCI will provide a combined $10 billion to states, the District of Columbia, territories, and tribal governments to expand access to capital for small businesses emerging from the pandemic, build ecosystems of opportunity and entrepreneurship, and create high-quality jobs.

Utah is projected to receive $69 million in funding from SSBCI, including $4.1 million for businesses with less than 10 employees and $8.3 million for businesses owned by socially and economically disadvantaged individuals. Go Utah estimates funding to become available to small businesses through local lenders by the end of 2022.

Utah selected three SSBCI programs through a robust discovery and design process to promote capital access to all recipient jurisdictions, including in underserved areas. These programs include:

  1. Capital Access Program
  2. Loan Guarantee Program
  3. Loan Participation Program

Go Utah’s strategic programs manager, Alecia Hart, is responsible for managing the SSBCI program and the state’s newly formed 1,000 New Women-Owned Businesses initiative, among other duties.

“Alecia is a great asset to the Go Utah team, and her work with the SSBCI program will benefit Utah’s small businesses,” said Ryan Starks, Go Utah’s managing director of Business Services. “We also look forward to her continued contributions to strengthen ties with Utah’s financial institutions which will play a critical role in deploying capital to rural and underserved populations.”

The state looks forward to these programs and their positive impact on credit availability in Utah.