Utah State Small Business Credit Initiative

posted in: Utah.gov | 0



Contact information:

Jonathan Hardy

Director, Utah State Small Business Credit Initiative
(801) 538-8650
jhardy@utah.gov

 

Eligible Applicants:

  • Small businesses defined as having less than 500 employees
  • Have been turned down for traditional credit resources
  • Application sponsored by a participating financial institution

Loan Guarantee Program:

  • Up to 80% Guarantee of Principal Loan Amount
  • Terms up to 7 Years
  • Target average term of 3 years
  • 4% Guarantee Fee
  • Target 3% or less True Loss Rate
  • Loan Loss Reserve fund maintained at a minimum of 10% of outstanding guarantees
  • Program can guarantee up to $118 Million in transactions from the original allocation with fees and guarantee expirations allowing for increased obligations in the future.

Loan Participation Program

  • Up to 80% purchased or primary participation in a loan transaction
  • Flexible terms and rate
  • Origination fees apply (To be determined)
  • Target 3% or less True Loss Rate
  • Program can use approximately $1.3 Million in funds for participation with future fees and interest income from either program to increase lending capacity in the future.

Basic Prohibitions

  • Lending on Passive Investments
  • Speculative Activities that develop profits from fluctuations in price rather than the normal course of trade
  • Financial Institutions as borrowers unless it is a Community Development Financial Institution
  • Transactions outside the State of Utah
  • Lending to persons convicted of a sex offense against a minor or participating with a financial institution that has an officer who has been convicted of the same.
  • Proceeds not used to refinance an existing transaction, payoff taxes owed, or reimburse any owner for equity invested
  • Pyramid Schemes
  • Gambling Enterprises

 

 

 

 

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