Because of the recent COVID-19 pandemic, the Utah Governor’s Office of Economic announces a plan to help Utah small business owners. The Utah Leads Together Small Business Bridge Loan program offers a bridge loan to the state’s small businesses with 50 or fewer employees.
The program is available beginning March 31, 2020, at 8 a.m. (MDT).
“This new program will help many Utah small businesses struggling with impacts from the COVID-19 pandemic and in need of assistance during this emergency in our country and our state,” said Val Hale, GOED’s executive director. “We hope that this loan program will help keep Utah workers employed and businesses open for business, at least in some fashion, as we face today’s difficult challenges and uncertain health and economic conditions.”
Loan amounts range from $5,000 to $20,000 with 0% interest for up to a 60-month period. These loans are for businesses, not nonprofits, and cannot exceed three months of demonstrated operating expenses and payments are deferred for 12 months.
The Utah Leads Together Small Business Bridge Loan program opens each week, Monday morning until Friday at noon, until the funds are used, or the program has met immediate needs, with the option to secure additional funding from the Utah Legislature, the federal government, or both.
GOED will determine the eligibility of bridge loan applicants. Applying is not a guarantee of funding. Funding preference is given based on specific criteria available online.
Bridge Loan Criteria
- Businesses must be established and licensed before January 1, 2020, and in good standing with the Utah Division of Corporations and Commercial Code (will be verified here).
- Applicants must have employees on their payroll for whom they have had payroll taxes withheld (i.e., W-2 employees).
- Applicants must provide six months proforma of estimated lost revenue or other documented loss evidence.
- No collateral requirements.
- Eligible loan uses include working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of operations.
- Receiving other forms of emergency funding will not disqualify an applicant from receiving loan funds through this program. Still, companies must disclose if they have applied for emergency funding from other sources.
Applications are reviewed on a weekly basis by a committee chaired by GOED’s Executive Director, Val Hale, and approved by the GOED Board. Businesses that are interested in participating in the program must complete the online application and provide all supporting information and documentation. Companies are notified of their loan status by email at the beginning of the following week. Applicants enter into a contract with GOED to accept their loan.
Learn more about the Utah Leads Together Bridge Loan program criteria, eligibility, and required information on GOED’s website.