SoFi Picks Utah for Regional Office

Pete CodellaNews, Tax Credits

The Governor’s Office of Economic Development (GOED), along with modern finance company SoFi, announced today that the company will open a regional office in Utah, adding up to 400 jobs to the community.

“SoFi is an exciting disruptive company in both finance and technology,” said Val Hale, executive director of GOED. “Utah has a strong financial sector and booming IT industry, and I believe SoFi will be right at home here. We look forward to the significant impact the company will have not only on our economy but the local community as well.”

Headquartered in San Francisco, SoFi works with financially responsible people to help them achieve their money, career and relationship goals. To date, the company has lent more than $8 billion in mortgages, student loan refinancing and personal loans to over 125,000 members. It also offers wealth management services and benefits that can’t be found at traditional lenders, such as career services and entrepreneur support. SoFi’s Utah office will employ professionals in a number of functional areas and complement the firm’s workforce in its Bay Area, New York, Washington, D.C. and Helena, Montana offices.

SoFi has indicated that the project will create up to 400 jobs over the next five years. The total wages in aggregate are required to exceed 110 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $108.9 million. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $5.8 million over five years.

“I’m very happy to welcome SoFi to Utah,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. “They’ll be a fantastic addition to the state’s dynamic financial services industry and a great complement to the excellent companies already doing business in the state. We’d like to thank CBRE for making us aware of this opportunity and making this win possible.”

SoFi may earn up to 20 percent of the new state taxes they will pay over the five-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the agreement with SoFi, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $1,155,615. Each year as SoFi meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.

As of this writing, SoFi is considering multiple Utah locations for their regional office. Exact location will be determined at a future date.