Utah Small Business Credit Initiative (USBCI) for Small Businesses
2023
What is the Utah Small Business Credit Initiative (USBCI)?
● $69 million to expand access to small business loans
● Runs from 2023-2030
● Two lending products that will expand access to credit and lower rates for small business borrowers
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EquitableAccess to Capital
● At least 29% of program funds are allocated to businesses owned by women and culturally, economically, and geographically diverse entrepreneurs.
● USBCI partners with Utah’s Inspire in Utah initiative to inspire women and those who identify as women to launch new businesses and apply for capital.
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How does the USBCI work?
● Funding will be distributed to lenders, who will lend capital directly to small businesses.
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UT
Capital Access Program
● Provides lenders with loss protection that helps them fund projects that normally wouldn't receive funding.
● Most accessible program
● Available for start-ups
● Target loan size: below $250k
● Market rates
● Flexible term
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Loan Participation Program
● Purchases up to half of a small business loan from a lender.The state-owned portion of the loan is assigned a low-interest rate that swings the interest rate down.
● Great for growth-stage businesses
● Target loan size: $250k+
● Low blended interest rate
● Flexiblie term
Why USBCI?
Capital Access Program
Loan Participation Program
Businesses who qualify for a loan today
Businesses who qualify for a loan today
+ low blended interest rate
Who is eligible to apply?
Eligible borrowers:
● Utah-based small businesses and non-profits as defined by the SBA.
Eligible loans:
● Loans should be used for a business purpose, including start-up costs, working capital, equipment, inventory, or services, etc.
● Loans between $25k-$1M
● Loans may not be used for passive real estate.
● Loans between $25k-$250k
***Please note: These eligibility requirements do not guarantee approval. Small business applications will be evaluated on a case-by-case basis for the program requirements outlined on the next slide.
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Program Requirements —
Businesses must apply through an enrolled lender to participate in the USBCI.
1 Business Plan/Intended Use
2 Financial Projections
Because this program works with lenders’private capital, it reduces, but does not eliminate, traditional lending requirements.
3 Tax Returns
4 Collateral
● Loans between $25k-$250
5 Credit Score
6 USBCIApplication Packet
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10 For more information, visit https://business.utah.gov/usbci/ or reach out at capitalaccess@utah.gov
