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Your source for small business loans in Utah

If you’re in business in Utah, you’re likely experiencing the reality of the expression “A rising tide lifts all boats.” Business success across a number of industries is rippling through the economy, creating opportunities and fostering growth in almost every market niche. In fact, U.S. News and World Report earlier this year ranked Utah’s economy as the second best in the nation in terms of economic stability and potential.

This economic vibrancy, however, does not happen without businesses making conscious decisions about the growth opportunities that lie before them. If you own storage units, you might be deciding whether to upgrade security in your existing units or expand to a new part of the Salt Lake Valley. If you own hotels, you might be assessing highway traffic projections and transit trends to determine where to build next. Maybe you’re a warehouse owner weighing the benefits of investing in artificial intelligence-driven automation or solar power. Whatever the opportunity, there is one piece you need to have in place to move your project ahead: financing. According to the Federal Reserve’s 2019 Small Business Credit Survey, 43 percent of firms sought external funds for their businesses last year. Of the sources of external funding, 55 percent were loans or lines of credit.

You have an array of choices for financing. You could tap into your retirement fund or other savings. You could hit up family and friends or launch a crowdfunding campaign. The Fed’s survey found more businesses are wondering about online lenders, but it also found lower applicant satisfaction with online lenders than with banks. One option for external funds remains the top choice for small and mid-sized businesses, and that’s working with a financial institution such as First Utah Bank. In fact, we hope you’ll do just that! We have experienced commercial loan officers who can help you every step of the way, whether a line of credit, term loan or or anSBA loan is right for your business needs.

Three key kinds of small business loans for our Salt Lake City customers

When we say we make decisions locally, we mean it. We are small business loan specialists for Utah businesses! Take a look at each of these three types of loans to get an idea of which might be right for your needs:

Term Loans — A term loan is for a specific amount of financing, and for the purchase of assets or to meet a particular financing need. Loan rates are generally fixed, but can be variable, and the loan can be paid back over one year or even 10 years, depending on the amount of the loan and other specifics. Here are some typical types of term loans:

  • Long-term working capital
  • Owner-occupied commercial real estate purchase or refinance
  • Investment/commercial real estate purchase or refinance
  • Large equipment purchase
  • Commercial vehicle purchase
  • Business debt refinance
  • Business debt consolidation
  • Business acquisition

Line of Credit — A business revolving line of credit is another option. This is a great option for managing your company’s short-term cash flow needs. When your small business in the Salt Lake City area has a revolving line of credit, you can borrow up to the pre-authorized amount whenever you need a loan. The credit line is typically backed by your business assets, although a line of credit may be unsecured if certain conditions are met. You only pay interest on the amount you are advanced, and there are no penalties for paying off the line of credit early. These are typical uses for a line of credit:

  • Improving cash flow, funding payroll, or seasonal working capital
  • Purchasing inventory or materials
  • Financing accounts receivable
  • Unplanned Events

The collateral you may use for a line of credit may vary. Here are some typical examples:

  • Accounts receivable
  • Inventory
  • Equipment (subject to limitations)

SBA Loans — First Utah Bank is a U.S. Small Business Administration Preferred Lender, making us the perfect partner for your small business loan. SBA loans are often a good choice for businesses for which traditional financing is not available. Our commercial loan officers and SBA Department associates can help you find the best loan options to meet your business needs! The SBA has several loan programs, which you can learn more about at this link. What can you use an SBA loan for? Many things, including:

  • Purchase or construction of an owner-occupied commercial building
  • Expand or modernize facilities
  • Consolidate debt to increase cash flow
  • Manage seasonal cash flow
  • Purchase machinery, equipment and fixtures
  • Finance leasehold improvements
  • Purchase an existing business
  • Finance receivables and/or inventory
  • Augment working capital (term loan or line of credit)
  • Refinance maturing debt
  • Start a franchise or new business

As you can see, we offer a variety of small business financing options for our Utah customers. One (or more!) may be perfect for your business project. Our Commercial Loan Officers would love to hear from you. Leave us a message on this link, or give us a call at 801-308-2265.