Based on a new impact report commissioned by the Utah Governor’s Office of Economic Development (GOED) and conducted by the Sorenson Impact Center, the $12 million Utah Leads Together Small Business Bridge Loan Program helped 1,150 small businesses and nonprofits with 50 or fewer employees across the state weather the economic fallout from the COVID-19 pandemic.
The center’s report shows the results from the program, how funding was used and whether applicants secured other forms of financial support. Throughout this summer, the center surveyed businesses and nonprofits that benefited from the bridge loan program. The center said 32 percent of bridge loan recipients responded, reporting the following:
• More than 27 percent of loans were deployed to small businesses in rural counties. The goal was 25 percent.
• Most Utah businesses used the loan to maintain their payroll (30 percent); pay their business rent, mortgage or utilities (27 percent); or pay for other business operating costs.
• Over 66 percent of businesses were able to keep or increase staff hours and avoid layoffs and furloughs.
• Approximately 13 percent of the businesses receiving loans were owned by black, indigenous or other people of color.
• Approximately 33 percent of businesses receiving bridge loans were owned by women, which is on par with state averages.
• While the U.S. Census reports approximately 5.4 percent of Utah’s residents have veteran status, 9 percent of business owners that received the bridge loan were veterans.
The survey conducted by the center also identified areas where businesses and nonprofits need additional support to navigate ongoing instability. More than one-third of companies (35 percent) identified new business grants as being helpful, with 18 percent of respondents identifying flexible loans as being helpful moving forward. Respondents also identified long-term low-interest capital, loan forgiveness and lending options to support capital improvements, such as upgrades to air filtration and sanitation systems, as helpful.
“We’re proud to partner with the Governor’s Office of Economic Development to measure the reach and impact of the Utah Leads Together Small Business Bridge Loan Program,” said Geoff Davis, CEO of the Sorenson Impact Center. “This initiative is part of the center’s broader work to support an equitable recovery from the COVID-19 pandemic.”
