Utah’s Innovative USBCI CAP Program: Boosting Small Business Growth

Kaitlyn ClarkeUSBCI

Utah, known for its dynamic and robust economy, takes another significant step in fortifying its economic landscape with the Utah Small Business Credit Initiative Capital Access Program (USBCI CAP). Funded by the American Rescue Plan Act of 2021, this initiative is set to turbocharge growth for small businesses across the state, further solidifying Utah’s reputation as a powerhouse of economic resilience and innovation.

Strengthening Utah’s Economic Backbone

The USBCI CAP program arrives at a crucial time, underscoring Utah’s commitment to its small business sector, the backbone of its thriving economy. By offering portfolio insurance to lenders, this program creates a loan loss reserve fund for each participating financial institution, bolstering confidence in lending to smaller enterprises.

Matching Funds for Maximum Impact

A standout feature of the USBCI CAP is its matching fund mechanism. Both borrowers and lenders contribute up to 7% of the loan amount to the reserve fund, which matches these contributions. This strategy doubles the financial safety net and amplifies the impact of each investment in a Utah small business.

Targeted Assistance for Diverse Communities

In a state celebrated for its economic diversity, the USBCI CAP prioritizes:

  • Socially and economically disadvantaged individuals (SEDIs), allocating at least 28.78% of funds to their businesses
  • Very Small Businesses (VSBs) with fewer than 10 employees are guaranteed at least 6% of the funding

Broadening Access to Credit

Eligible businesses must have fewer than 500 employees, with the program focusing on loans between $25,000 and $250,000. This broad range ensures that many small businesses, from startups to more established companies seeking expansion, can benefit.

Promoting Responsible Lending

The program is not just about providing funds; it’s about fostering a healthy lending environment. By monitoring annual claims rates against the reserve fund, the USBCI CAP ensures support for responsible lending that benefits Utah small businesses.

Streamlined Application, Profound Impact

The USBCI CAP application process is simple and efficient, including a “credit not available elsewhere” test. This approach ensures the program reaches those who need it most, driving growth where it’s needed.

Enhancing Utah’s Economic Strength

As one of the nation’s most vibrant economies, Utah’s introduction of the USBCI CAP is a strategic move to enhance its economic strength. By focusing on small business owners, the program supports individual entrepreneurs and contributes to the broader narrative of Utah’s economic success.

A Bright Future for Utah

With the USBCI CAP, Utah reaffirms its commitment to fostering a diverse and robust economy. As small businesses across the state leverage this opportunity, Utah’s economy will reach even greater heights, driven by innovation, inclusivity, and a spirit of enterprise that’s uniquely Utah.