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 agency planned to use $31 million of the funding in a loan guarantee program. However, after further study, the office has announced its plans to apply the funds to the USBCI Loan Participation Program, increasing{mprestriction ids="1,3"} that program’s funding to $59 million.
Moving funding to the Loan Participation Program means that the Loan Participation Program has increased from $28 million in funding to $59 million and that the loans are available at a guaranteed low-blended interest rate. The move makes more funding available for participating Utah lenders and 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 Governor’s Office of Economic Opportunity 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 Governor’s Office of Economic Opportunity office works closely with the Department of the Treasury to administer the funds under contract to the state of Utah.
Further information about the Utah Small Business Credit Initiative is available at business.utah.gov/usbci.{/mprestriction}
