January 16, 2025
The Utah Small Business Credit Initiative, managed by the Governor’s Office of Economic Opportunity, is a state program funded by the U.S. Treasury to improve access to capital for small businesses across Utah. Designed to assist rural, underserved, and disadvantaged borrowers, the program partners with banks and other lenders to mitigate the risk associated with traditional lending.
USBCI bridges the gap by covering up to 50% of a loan and blending its low-interest capital with standard loan rates, making financing more accessible.
To qualify, businesses must apply through one of the program’s enrolled lenders, as shown on USBCI’s webpage. Applicants are required to submit a business plan outlining the intended use of funds, financial projections, and recent tax returns. Additionally, they must meet collateral and credit score requirements and obtain necessary USBCI certifications.
“If an individual lacks access to traditional lines of capital, we work with our banking partners to close that gap,” said USBCI program director, Paul Jolley. “Lenders may want to assist the borrower but can’t take the risk, which is where we come in.”
The program launched in late 2022, following a $69 million allocation from the U.S. Treasury, which will be distributed in three tranches through 2030. Its core mission is to support disadvantaged small businesses that create jobs, contribute to local economies, and strengthen communities.
From September 2024 to December 2024, the program assisted in funding approximately 24 loans to Utah small businesses, equating to $9.6 million of the first tranche, which ends in November 2025. USBCI aims to allocate at least 29% of the total funding to women-owned businesses and other culturally, economically, and geographically diverse entrepreneurs.
Jolley emphasized the program’s impact by citing a hypothetical example: “Say someone wants to start a laundry business down in Price, and it’s going to employ 10 individuals and contribute to the overall growth of the area. That’s what we’re interested in,” he said. “It’s all about job creation. That’s what this program is designed to do.”
For more information about the Utah Small Business Credit Initiative, including a list of participating lenders and application details, visit the GOEO and Startup State Initiative websites, where additional resources on other funding opportunities can be found.
The information in this article is current as of the publishing date and is intended for informational purposes only. This article does not, and is not intended to, constitute legal, tax, or business advice. Any resources and organizations mentioned, unless an entity of or a partner of the state of Utah, are not formally endorsed by the Startup State Initiative or state of Utah.