Why are Utah Businesses Considering the Shift to Remote Work

For many years, there were efforts by Utah business leaders to push clean air policies by encouraging more work from home in the Beehive State. Often, though, they were met with resistance, especially from those who wanted a more traditional office environment for their workers.

This year, something changed those attitudes for some: the COVID-19 pandemic. With sheltering in place as part of the response, working from home became the default setting for many people working in Utah. The result was also clearly shown: according to a study by the National Academy of Sciences, global air pollution was lessened by 60 percent.

Now, state legislators are working on a bill to expand and encourage remote work with incentives for its own workers. A recent article in Utah Business goes into details about this effort and how it may affect more people and companies as that idea expands.

With it affecting small businesses as well as larger ones, there may be needs to find more funding. First Utah Bank can help with its SBA loans program.

Showing the affects of less commuting

The article goes into more detail on why companies object to clean air initiatives, using the efforts of the Utah Clean Air (UCAIR) Partnership as an example. Its Executive Director, Thom Carter, says that there were “three major stumbling blocks. One was attitudes—executives, in particular, like to be around people.” The others were feelings of a lack of productivity from working at home and increased costs for providing equipment for the home office.

With the pandemic response and its shown effect on the environment, state business leaders in a recent survey supported increased working from home. But, whether it affected Utah as much as others is a point of some contention. The University of Utah’s Department of Atmospheric Sciences used data from an air quality monitoring station in May to show that nitrogen dioxide fell 36.4 percent, while nitric oxide was lessened by a substantial 57.4 percent.

At the same time, COVID-19’s later arrival in the state was during a time when traditionally there is clearer air quality in Utah. That – and the fact that there are economic affects with working from home that may not be sustainable – paints a mixed picture of the efforts.

Helping to move remote work along for everyone

What may be needed is some incentives for private businesses to adopt remote work policies. One idea the article posits is extended tax credits directly to the employees who would need to supply their own WIFI or office equipment. That access to the internet is probably the biggest sticking point for progress with this idea.

“One lesson we have seen is that you need sufficient broadband infrastructure in order to work or do school from home, and some communities outside the Wasatch Front don’t have that infrastructure,” said Cameron Diehl, Executive Director of the Utah League of Cities and Towns.

“The ones that do could see this as an economic opportunity. You could say to a potential employee, ‘You can do your job at your office in a city on the Wasatch Front, or you can come down to central Utah and have access to the great outdoors.’ I’ve heard from multiple city leaders who say this is a tremendous opportunity for us to attract a workforce here.”

Utah’s past air quality concerns were one of the few negatives to relocating businesses to the state, according to Val Hale, Executive Director of the state’s Office of Economic Development. An improvement there could mean more businesses wanting to head toward Utah – or there could be a reverse effect. 

“Utah workers will suddenly be fair game for companies in California and New York, if they can work from home for a company in another state,” Hale said. “Utah companies, on the other hand, can poach employees from other states.”

SBA loans are one answer for specific Utah business needs

As strategies change due to any number of factors, businesses in Salt Lake City strive to learn to adapt. If your business is newer, though, there may be some extra challenges that you face that go beyond the external. First Utah Bank can help companies getting their start with loans from the U.S. Small Business Administration (SBA).

Your hometown bank is the preferred lender for SBA loans in Utah, and we have a department built solely for this type of loan. SBA specialists at First Utah Bank can help you navigate the details of receiving one of these loans, which are an option for business owners where traditional or conventional bank financing is hard to obtain or isn’t available.

The specific needs for which an SBA loan can be used are all regular parts of doing business and trying to develop beyond the start up phase. Among the uses for an SBA loan:

• Buying an existing business
• Purchasing inventory or receivables
• Adding to working capital (a term loan or line of credit)
• Refinancing debt that is maturing
• Consolidating debt to bring in more money
• Managing cash flow during peak buying seasons
• Buying machinery, fixtures and equipment
• Money for leasehold improvements
• Starting expenses for a franchise or a new business
• Financing exports
• Buying or building an owner-occupied commercial building
• Expanding or refurbishing facilities in order to modernize them

As the evolution of your thriving business continues, First Bank Utah can be there to advise along the way, whether as an SBA lender or with any banking need. Find out more about what we have to offer at our website, or call us at 801-308-2265.