Utah Leads Together Bridge Loan round one summary

COVID-19 Bridge Loan: 500 Small Businesses Receive Round One Funding Totaling Over $6.1M

Pete CodellaNews, COVID-19

The Utah Governor’s Office of Economic Development (GOED) announced today that it notified 500 round one applicants that they’ll be receiving Utah Leads Together Small Business Bridge Loan funds.

A total of 1,031 completed the application process, submitting all required information before the April 3 noon deadline. As soon as contracts are completed, which GOED expects to take one-to-two business days, it will begin mailing checks. A total of $6,105,500 was awarded in round one, leaving $4,894,500 available for Utah small businesses and nonprofits in round two. 27% of round one funds were awarded to rural businesses.

The second tranche of the Utah Leads Together Small Business Bridge Loan for entities impacted by the COVID-19 pandemic will accept applications from April 13, 2020, at 8 a.m. to April 16 at noon (MDT). During round two, loan applications will be accepted from Utah small businesses and Utah 501(c)3 nonprofit organizations. Nonprofits were not included in tranche one. The eligibility requirement of 50 or fewer employees applies to both small businesses and nonprofits.

“We were pleased to receive 2,765 eligibility applications submitted before the first round deadline,” said Val Hale, GOED’s executive director. “We want to be able to help as many of the state’s small businesses and nonprofits as we can. Utah small businesses comprise 99% of all companies in the state. The number of individuals employed by Utah small businesses is 46% of all workers in the state. They are the backbone of Utah’s economy, and we encourage all eligible small businesses and nonprofits to apply for the second round of funding.”

The Utah Leads Together Small Business Bridge Loan program uses $11 million in state funds to provide gap funding to Utah’s small business and nonprofit entities. A minimum of 25% of the bridge loan fund will go to support rural Utah businesses and nonprofits (entities not located along the Wasatch Front).

Loan amounts range from $5,000 to $20,000 with 0% interest for up to a 60-month period. Loans are for businesses and nonprofits, and cannot exceed three months of demonstrated operating expenses. Loan payments are deferred for 12 months.

GOED will determine the eligibility of all bridge loan applicants. Applying is not a guarantee of funding. Preference for funding will be given based on specific criteria available online. Learn more about the Utah Leads Together Small Business Bridge Loan program criteria, eligibility and required information here.

Eligible, but unsuccessful round one completed applications are automatically considered for round two funding. Applicants that were determined to have insufficient documentation in round one can provide additional information to be considered eligible for round two. There’s no need to reapply, but reviewing and adding supplemental information in the application portal is encouraged. Access to the application portal will be available at utahgoed.force.com/goed from April 13 at 8 a.m. to April 16 at noon (MDT).