Tomorrow, Utah-based small businesses with 50 or fewer employees impacted by the COVID-19 pandemic may apply for a new bridge loan program offered by the Utah Governor’s Office of Economic Development (GOED).
The Utah Leads Together Small Business Bridge Loan program uses approximately $8 million in repurposed state economic development funds. Additionally, the Utah Department of Workforce Services has contributed $500,000 to the program.
Loan amounts range from $5,000 to $20,000 with 0% interest for up to a 60-month period. Loans cannot exceed three months of demonstrated operating expenses. Loan payments are deferred for 12 months, and GOED will use at least 25% of the program funds to support rural Utah businesses.
There are guidelines, eligibility requirements and required information that must be submitted with applications.
The following are some highlights, but please refer to utahgoed.info/loan for complete details.
- 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.
- Businesses that have experienced severe economic impact due to the COVID-19 pandemic.
- Businesses that can demonstrate a multiplier impact on other industries.
- Businesses that play a key role within a strategic state supply chain.
- GOED will determine the eligibility of applicants. Applying is not a guarantee of funding.
- Financial statements: profit and loss, and balance sheet statements for the previous year, and most recent quarter or month.
- Last year’s business state of Utah tax returns (2019 or 2018).
- A copy of the business lease agreement or mortgage statement for the business location.
Utah small businesses can apply for the Utah Leads Together Small Business Bridge Loan starting on March 31, 2020.