The Utah Governor’s Office of Economic Opportunity recently received federal funding for the Utah Small Business Credit Initiative (USBCI). The initiative includes lending programs to expand access to capital at lower interest rates for Utah small business borrowers.
Initially, through a contracted vendor, the Economic Opportunity office planned to use $31 million in a Loan Guarantee Program. However, after careful consideration, the office has determined to apply those funds to the USBCI Loan Participation Program, increasing that program’s funding to $59 million.
Moving funding to the Loan Participation Program means:
- The Loan Participation Program has increased from $28 million in funding to $59 million.
- The loans are available at a guaranteed low-blended interest rate.
- More funding is available for participating Utah lenders.
- Larger loans can be offered to growth-stage businesses.
“Increasing Utah’s Loan Participation Program funding will result in more of Utah’s small businesses qualifying for government-backed, low-interest loans,” said Alecia Hart, USBCI director. “We’re looking forward to getting these funds to Utah entrepreneurs and companies to increase economic opportunities across the state.”
With this USBCI program change, the Economic Opportunity office continues to work through contract and compliance updates with the U.S. Department of the Treasury. Utah lenders can apply to be part of the program. USBCI will begin to announce the program’s vetted lenders starting next month.
USBCI is part of the federal State Small Business Credit Initiative. The Economic Opportunity office works closely with the Department of the Treasury to administer the funds under contract to the state of Utah. Visit our webpage to learn more about the Utah Small Business Credit Initiative.