Your go-to lender for an SBA loan in Utah
Say you have a Utah-based company that needs capital to grow its brine shrimp export business. Or perhaps you want to buy or build a warehouse to house your food distributorship. Your need might be more along the lines of consolidating debt to increase your company’s cash flow. If you’ve found that conventional bank financing is just not available to you on terms you find acceptable, it’s time to ask the commercial lending professionals at First Utah Bank about another great option for many small Utah businesses — an SBA loan or line of credit.
We are an SBA Preferred Lender, which means we offer an array of SBA loan programs. We’re able to offer small businesses reasonable terms because our risk is reduced by the partial loan guarantees of the U.S. Small Business Administration. Thousands of Utah businesses already receive SBA loans. In fact, from 2010 through 2018, Utah was the No. 1 state in terms of access to SBA loans and the sheer volume of loans, according to a study by FitSmallBusiness.com. In those years, more than 10,000 loans were issued to 62,420 small Utah businesses. The average loan size was $223,349, according to the study. Utah had the highest percentage of small businesses receiving loans of all states — 16.26 percent.
Have you considered an SBA loan for your Salt Lake City Business?
Utah and Salt Lake City remain a hotbed for SBA lending through a variety of loan programs! The best one for you will depend on your business’ needs and the amount of money you need. Here’s are five of the SBA loan programs your business might consider:
- 7(a) Loan Program —Utah businesses might consider this kind of SBA loan if they want to buy or refinance equipment or owner-occupied commercial real estate, make leasehold improvements, consolidate business debt, finance a business acquisition, gain more working capital, or even start a business. The terms for such loans may be five years or even 25 years, depending on the use of the proceeds. Loans amounts can be up to $5 million.
- 504 Loan Program — Projects larger than those allowed by the 7(a) Loan program might be accommodated through this program. A Salt Lake City business might seek an SBA loan through this program if they want to buy, build or refinance their building or to buy long-life fixed assets to expand or modernize the building. This program is designed for long-term, fixed-rate financing with lower equity injection requirements. Typically, First Utah Bank covers 50 percent of the total project costs, the borrower covers 10 percent and the SBA covers the remaining 40 percent.
- SBA Express — This SBA loan program is perfect for the Salt Lake City business that is just getting started and needs a little extra working capital. Typically, it allows access to a line of credit for between one and two years, with an optional renewal. It also can be used for term loans under certain conditions. The maximum a business can borrow via this program is $350,000.
- SBA Export Express — This is the simplest export loan program that the SBA offers, and allows companies to use the proceeds for any business purpose that enhances its export development and activities. We’re able to use our own forms and procedures to make term loans or revolving lines of credit of up to $500,000.
- Working Capital CAPLine Program — This SBA loan program is similar to the SBA Express program, but is generally set up to help established small and mid-sized businesses meet their short-term and cyclical working capital needs. A line of credit up to $5 million is available.
Veterans at present enjoy some fee reductions and waivers, depending on the loan, and also for certain SBA loans that are less than $150,000. Our Commercial Loan Officers can answer your questions. For a business to receive an SBA-backed loan, it must be for-profit and can’t be in certain industries, which you can find on this eligibility questionnaire. The business also must be physically located in the United States, and the business owner must have some of his or her own money invested.
We all know that Utah is a great place to start or to grow a company because of its reasonable real estate prices, well educated workforce, growing population, international airport, rail lines and interstate highways. Our economy certainly has momentum! Just last month, USA Today ranked it as the third fastest growing economy among all states for the five years ending in 2018. Our gross domestic product growth averaged 5.7 percent for those five years, and our employment grew an average of 2.6 percent per year.
Various SBA loan programs fill an important need for Salt Lake City businesses’ capital needs. If you’re looking for a financial institution with SBA experience — and SBA Preferred Lender status — look no further! Our Commercial Loan Officers and dedicated SBA Department associates will work with you to find the best loan options to fit the needs of your business. Just get in touch with us by phoning 801-308-2265 or by sending a secure email.