USBCI for Small Businesses Slides

Utah Small Business Credit Initiative (USBCI) for Small Businesses

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

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.

How does the USBCI work?

● Funding will be distributed to lenders, who will lend capital directly to small businesses.

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

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.

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