Loan Participation Program
The Utah Small Business Credit Initiative Loan Participation Program (USBCI LPP) provides companion loans to enable a greater extension of credit and lower blended interest rates for small business borrowers.
The program authorizes a network of Community Development Financial Institutions and Revolving Loan Funds (“CDFI/RLFs”) to manage a loan program on behalf of the state. These “CDFI/RLFs” partner with banks and credit unions (“Primary Lenders”) on a loan-by-loan basis to expand access to capital for small businesses. The program is structured to participate directly in a lender loan at a participation rate of up to 50%.
USBCI funding deployed by CDFI/RLFs receives a low-interest rate and fee set by the state. The private funding deployed by the “Primary Lender” receives a market rate set by the lender. The borrower gets a blended interest rate between the going market rate and the state's low-interest rate.
- Enables lenders to expand access to credit for small businesses.
- Provides small businesses with interest rates and fees below market rates by combining low-cost public capital with private investment.
- The CDFI/RFF and Primary Lender partnership enables the program to help distribute capital to underserved communities and regions.
The USBCI LPP will assist Utah businesses that need capital to stabilize, pivot, or expand their businesses.
“CDFI/RLFs” are organizations that are Certified Development Financial Institutions or qualifying economic development organizations with a revolving loan fund (CDFI/RLFs) that are approved to participate in the USBCI LPP. Approved CDFI/RLFs must execute a USBCI LPP CDFI/RLF Master Agreement and adhere to the terms and conditions contained therein.
Please contact email@example.com to become an approved “CDFI/RLF”.
“Primary lenders” are approved lenders, such as banks or credit unions, that must execute a USBCI LPP Primary Lender Master Agreement and adhere to the terms and conditions contained therein. Please contact firstname.lastname@example.org to become an approved “primary lender”.