The Utah Governor’s Office of Economic Development (GOED) is now offering a “Bridge” loan for Utah’s Small Businesses and Non-profits (501(c)3s)! The program utilizes $11MM in repurposed state economic development funds. The GOED has indicated that Non-profits may apply in the second-round. Additionally, GOED will continue to allocate 25% of the funds for rural Utah businesses!
The first round of applicants (March 31-April 3) has closed, and applicants will likely be notified via email on April 8th. The second round of applications will be received from April 13 (8 a.m.) to April 16 (noon) MDT! Eligible / Unsuccessful applications from the first round will be automatically considered in the second round! Applicants with insufficient documentation from the first round should provide additional documentation to become eligible in the second round (there’s no need to reapply)!
LOAN REQUIREMENTS:
- Businesses / Non-profits with 50 or fewer employees.
- Businesses / Non-profits established and licensed before January 1, 2020.
- Businesses /in good standing with the Utah Division of Corporations and Commercial Code (will be verified HERE).
- Businesses must have employees on their payroll for whom they have had payroll taxes withheld (i.e., W-2 employees).
- Businesses must provide six months proforma of estimated lost revenue or other documented loss evidence.
- No collateral requirements!
- Non-profits may apply in the second round.
Required Documents:
Preference may be given to:
- Businesses that have experienced severe economic impact due to the COVID-19 pandemic (see below).
- Businesses that can demonstrate a multiplier impact on other industries.
- Businesses that play a key role within a strategic state supply chain.
- Businesses that pay above-county-average wages.
- Businesses that employ full-time workers.
- Businesses whose complete application demonstrates solvency before the current economic crisis.
LOAN TERMS / DETAILS:
- Loans range from $5,000 to $20,000!
- 0% interest!
- 60-month period!
- Loan payments will be deferred for 12 months!
- Loan amounts shall not exceed three months of demonstrated operating expenses!
- Loan monies may only be used for:
- Working Capital for Payroll Expenses
- Rent / Lease / Mortgage payments
- Utility Expenses (or other similar expenses that occur in the ordinary course of operations)
- Note: Receiving other forms of emergency funding does not disqualify applicants from receiving loan funds through this program (but companies must disclose if they have applied for emergency funding from other sources).
To demonstrate financial stress or disrupted operations, businesses may provide:
- Notices from tenants closing operations and not paying rent caused by loss of income.
- Notice of inability to pay rent or make loan payments due to reduced sales or suspended operations.
- Increased costs related to COVID-19 prevention measures.
- Notice of disrupted supply network leading to a shortage of critical inventory or materials.
- Other circumstances subject to review on a case-by-case basis.
The GOED will determine the eligibility of all applicants who submitting to participate in the program (applying is not a guarantee of funding). Applicants will be notified by the GOED of their loan status via email.
Need help? Don’t hesitate to ask. Biznis Resource has your back!
OTHER BUSINESS CAPITAL / FINANCE OPTIONS – CLICK HERE!
IMPORTANT TIPS: 1) Document all payroll costs, and 2) Create line items for each Covid-19-related expense (i.e., time spent on extra meetings, additional supplies purchased, increased cost of benefits. technology-related coping expenditures, etc.). Doing so will make it clean and easy to request / receive loan forgiveness and tax exemptions down the road!
The Consultation is FREE, so there’s absolutely no risk!
Re-source today with Biznis Resource… the better, easier way!
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