USBCI for Small Businesses
The Utah Small Business Credit Initiative (USBCI) offers loans with a target size of $25,000 to $3 million to Utah small businesses through two lending programs: a Capital Access Program and a Loan Participation Program.
Each program plays a unique role in providing capital to Utah small businesses. This webpage contains the following sections to help small businesses learn about these programs:
Which program is right for my small business?
USBCI helps expand access to credit and lower rates for small business borrowers. It consists of two programs: a Capital Access Program and a Loan Participation Program. The two programs have different structures and advantages for Utah small businesses.
Small businesses may be interested in a particular program. However, the lender will decide which program best fits them.
Capital Access Program (CAP)
Provides lenders with loss protection that helps them fund projects that usually wouldn’t receive funding.
- Target loan size of $25,000 - $250,000
- Most accessible program
- Average term of 3-5 years
- Market rates
Loan Participation Program (LPP)
Covers purchases up to half of a small business loan from a lender (up to $1 million). The state-owned portion of the loan is assigned a low-interest rate that swings market rates down. This low-interest rate is fixed between 1-3%.
- Target loan size of $250k+
- Great for growth-stage businesses
- Average term of 3-5 years
- Low blended interest rate
- Utah-based small businesses and nonprofits with under 500 employees
- Loans may be used for a business purpose, including but not limited to start-up costs; working capital; franchise fees; and acquisition of equipment, inventory, or services used in the production, manufacturing, or delivery of a business’s goods or services. Funds may also be used for the purchase, construction, renovation, or tenant improvements of an eligible place of business, not for passive real estate investment purposes.
- Loans may not be used for passive real estate.
Businesses must apply through an enrolled lender to participate in the USBCI. Because this program works with lenders’ private capital, it reduces but does not eliminate traditional lending requirements. Program requirements include:
- Business plan/intended use
- Financial projections
- Tax returns
- Business and personal credit scores
- USBCI Certifications (listed below)
USBCI-enrolled lenders will work with borrowers individually to evaluate their eligibility for USBCI programs.
How to Apply
Find a USBCI-enrolled Lender
To apply for a USBCI program, select a lender from the USBCI-enrolled Lender List. USBCI defines a lender as a bank, credit union, community development financial institution, or economic development organization with a revolving loan fund.
When you’ve selected a lender, let them know you’re interested in applying for a USBCI loan.
Next, work with your lender to submit a USBCI Borrower Application. Documentation includes a loan application through the lender, along with the following USBCI notices and certifications:
- USBCI Privacy Act and Notice
- Borrower Use of Proceeds and Conflict of Interest Certification
- Borrower Sex Offender Certification
- Guarantor Use of Proceeds and Conflict of Interest Certification (if applicable)
- Guarantor Sex Offender Certification (if applicable)
If you’re approved for a USBCI loan, you’ll need to complete additional forms before closing the loan:
- USBCI Borrower Certification Related to Business Enterprises Owned and Controlled by Socially and Economically Disadvantaged Individuals
- This federally required form helps us ensure this funding is equitably distributed. If over 29% of program funding is allocated to underserved communities, we will receive an additional $4.4 million in incentive funding.
- Privacy Notice and Demographic-related Data Form
- This federally required document helps us ensure this funding is equitably distributed. If over 29% of program funding is allocated to underserved communities, we will receive an additional $4.4 million in incentive funding.
- Authorization to Disclose Records Form
- This form lets us collect tax data to measure the cost of this program to taxpayers. Ideally, investments through USBCI will generate enough tax revenue to cover the program’s cost.
Please note that these forms are not included in the initial application. Demographic information is only collected after the loan is approved. This process ensures all USBCI loan evaluations are fair and equitable.