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Small Business Administration financing programs

Small Business Administration (SBA) guaranteed loans are just one of the tools available to small businesses in Salt Lake County.  To be eligible for SBA loan assistance, a business must be organized for profit, be based in the U.S., and be small under SBA's size standards. Businesses ineligible for SBA assistance include non-profit businesses, financial businesses primarily engaged in lending, developers, life insurance companies, gambling establishments, and businesses which have caused previous losses to the government.

The 7(a) Loan Guaranty Program is SBA's primary loan program.  Under this program, a commercial lender makes a loan to a borrower and SBA guarantees up to 90% of the loan.  This guarantee reduces the risk to the lenders, which in turn encourages them to invest in more small businesses.

A 7(a) loan can be used for:

  • Purchase of Land and/or building
  • Construction/expansion of facilities
  • Leasehold improvements
  • Purchase of equipment and inventory
  • Refinance of eligible debt
  • Purchase an existing business
  • Working capital

List of Salt Lake County's top SBA lenders

 

Certified Development Company (504) Loan Program is a long-term financing tool for economic development within a community.  The program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.  CDC monies cannot be used for operating expenses or for start-up businesses.

The typical 504 project includes a loan secured from a senior lien holder, such as a bank, covering 50 percent of the costs. The CDC is the junior lien holder, backed by a 100 percent SBA-guaranteed debenture, and covers up to 40 percent of the cost, with the final 10 percent equity required from the small business.

A Certified Development Company is a non-profit corporation set up to contribute to the economic development of its community.  CDCs work with the SBA and private sector lenders to provide financing to small businesses.

Utah's two major CDC's are:

Mountain West Small Business Finance
2595 East 3300 South
Salt Lake City, UT  84109
801-474-3232


Utah Certified Development Corporation
2404 Washington Blvd.
Suite 1000
Ogden, UT  84401
801-627-1333

 

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