The Utah Governor’s Office of Economic Development (GOED) announced today that it completed two rounds of funding for its Utah Leads Together Small Business Bridge Loan on March 31 to April 3 and April 13 to 16, 2020.
The bridge loan program was funded with $11 million in federal funds to provide gap funding to Utah’s small business and nonprofit entities. Additionally, the WCF Insurance Foundation contributed $1 million to the bridge loan to support Utah’s small business community at this challenging time, bringing the bridge loan program to a total of $12 million.
“We have been amazed at the applications received for both rounds of the Utah Leads Together Small Business Bridge Loan program,” said Val Hale GOED’S executive director. “Though we were not able to award all of the applicants, we hope that the loans awarded will help these small businesses and nonprofits succeed.”
A minimum of 25% of the bridge loan fund was earmarked to support rural Utah businesses and nonprofits (entities not located in one of the Wasatch Front counties: Weber, Davis, Salt Lake, and Utah counties).
Between the two bridge loan rounds, more than 5,000 businesses and nonprofits began the application process. In round one, a total of $6,095,500 was awarded to 501 small Utah businesses, leaving $5,904,500 available for Utah small businesses and nonprofits in round two. Initially, 502 companies were awarded in round one; however, one company elected not to accept the loan.
Over 27% of round one funds went to rural Utah businesses. Over 33% of round two funds went to rural Utah businesses, and over 5%, which represents more than half of eligible applications, went to nonprofit organizations.
GOED will deliver round two bridge loan contracts electronically by close of business on April 23. As soon as agreements are completed, which GOED expects to take one-to-two business days, checks will be processed and mailed by the state finance department, which takes approximately one working day.
Although not all applicants will receive funding, GOED has acted quickly and efficiently to deliver much-needed cash to Utah’s small businesses and nonprofits — to entities with 50 or fewer employees.
Utah Leads Together Small Business Bridge Loan criteria and requirements are available here. Additional information is available in GOED’s March 30 bridge loan announcement, and it’s April 8 summary of round one funding.
Additional information will be shared after round two contracts are complete, and funding is delivered. GOED is also working with the Sorenson Impact Center at the University of Utah to provide, in four-to-six weeks, a comprehensive third-party review of rounds one and two of GOED’s bridge loan program.
Summary of GOED’s Utah Leads Together Small Business Bridge Loan program*:
Round 1
- 501 businesses received loans
- Funds awarded: $6,095,500
- 27.3% of contracts awarded to rural Utah businesses
- Award letters and contracts distributed April 1-2
- Checks mailed beginning April 3
Round 2
- 648 total businesses and nonprofits received loans
- Funds awarded: $5,904,500
- 33.9% of contracts awarded to rural Utah businesses
- Over 50% of nonprofits that applied and were eligible received a loan
- Award letters sent April 22
- Contracts being sent April 23-24
- Checks mailed beginning April 24
Bridge Loan
- 1,149 Utah small businesses and nonprofits received loans
- Funds awarded: $12,000,000
- 30.5% ($3,667,500) of loans awarded to rural Utah small businesses and nonprofits
- The program positively impacted approximately 15,000 jobs within the 1,149 Utah small businesses and nonprofits
Any questions from Utah Leads Together Small Business Bridge Loan applicants should be directed to bridgeloan@utah.gov.
*Note: The bridge loan summary is accurate as of April 23, 2020. Because round two contracts and loan disbursements are not yet complete, final figures may be slightly different. GOED will provide a third-party, comprehensive review of its bridge loan program in four-to-six weeks.