Utah Small Business Credit Initiative U.S. Treasury Report
2024 Third-Quarter
July 1 to Sept. 30, 2024
The U S Treasury requires states participating in its State Small Business Credit Initiative (SSBCI) program to report program allocations, income, and expenses quarterly and annually. The Treasury’s fiscal year starts in January and ends in December
This report is for the Utah Small Business Credit Initiative (USBCI) and its 2024 third-quarter activities The reporting period is July 1 to Sept 30, 2024
The Utah Governor’s Office of Economic Opportunity (GOEO) administers the state’s SSBCI program USBCI includes two Treasury-approved loan programs:
1 Capital Access Program (CAP)
2 Loan Participation Program (LPP)
USBCI helps Utah business owners gain access to capital If the program achieves its goal of allocating 29% of funds to small business owners in underserved and rural communities, it will benefit from additional Treasury funding (approximately $4.2 million). The program seeks to foster economic growth and development, ensuring that all state regions have opportunities to thrive.
During the third quarter, the USBCI program welcomed two new participating lenders, including one in rural Utah. These new lending partners bring the total number of USBCI enrolled lenders to 15, providing statewide coverage for Utah small businesses
As of Sept. 30, 2024, USBCI's efforts resulted in the following key outcomes:
● Committed $3,092,445 in loan proceeds reflecting 18 loans to small businesses
● Partnered with four economic development organizations (EDOs) and 15 local lending partners, providing statewide USBCI coverage
● Assisted distribution of capital in five Utah counties, including three rural counties
The USBCI team continues to refine internal processes. For example, USBCI updated its policy so the team can review and approve loans up to $1 million, providing a faster, more efficient approval process. The program’s loan review committee will continue to review loans over $1 million. The program’s average time from loan application to disbursement of funds is 32 days By the end of 2024, the intention is to reduce internal USBCI process time to 20 days or less
USBCI plans to achieve the Tranche 1 allocation goal of 80% of the $21 million committed in early 2025 and is on track to secure an additional $23 million distribution from the U S Treasury for Tranche 2 by July 2025.
Of the state’s $69 million allocation from the U S Treasury, $58 7 million is designated for the Loan Participation Program (LPP) to enhance financial support for Utah’s small businesses. Meanwhile, $10 4 million is allocated to the Capital Access Program (CAP), which focuses on facilitating access to capital for eligible businesses across the state
In the fourth quarter of 2024, USBCI will launch a new statewide Utah chambers of commerce referral program. The incentive program will provide a referral fee to Utah chamber partners based on the loan amount
Also, in the fourth quarter, USBCI will complete its application for a Treasury-sponsored technical assistance program, bringing $1 2 million in additional resources to the state to assist small businesses by identifying and applying for USBCI loans USBCI will deliver the technical assistance funding to community partners who will manage the program on USBCI’s behalf.
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Program Allocation
to Participating Jurisdiction
* The total represents the SSBCI distribution that could be received from the U.S. Treasury to the Utah Small Business Credit Initiative if the program meets the requirements of each funding tranche.
^ A loan was withdrawn after application approval.
Program Income
* Correcting a transposition error from USBCI’s 2024 second-quarter report.
Program Expenses
Costs as a Percentage of Cumulative Funds Disbursed To Participating Jurisdiction 2 9%^
* Ordinary adjustments from continuing operations based upon the required report submission date.
^ In Tranche 1, administrative costs are not to exceed 5% of allocated funds.
