USBCI LPP Program Borrower Application Guide

USBCI LPP Program Borrower Application Guide

(Revised March, 13, 2024)

Thank you for participating in the Utah Small Business Credit Initiative (USBCI) Loan Participation Program (LPP). We look forward to working with you to expand access to capital for small businesses in Utah.

To submit an application, go to goed.my.salesforce-sites.com/econ/, select Funding Opportunities, and then select the USBCI LPP Borrower Application.

Section 1: Overview

Section 2: Lender Information

Question 1: Name of economic development organization.

● This field will auto-fill.

Question 2: USBCI LPP lender ID.

● Your USBCI LPP lender ID is the contract number from the lender’s “USBCI LPP EDO Master Agreement”.

Question 3: Attach the financial institution's signed "EDO Use of Proceeds and Conflict of Interest Certification" form.

Question 4: Attach the financial institution's signed "EDO Sex Offender Certification" form.

Question 5: Name of primary lender.

Question 6: Primary lender EIN.

Question 7: Attach the financial institution's signed "Lender Use of Proceeds and Conflict of Interest Certification" form.

Question 8: Attach the financial institution's signed "Lender Sex Offender Certification" form. business.utah.gov/usbci

Section 3: Borrower Information

Question 9: Upload Lender Credit Memo/Write-up.

Question 10: Upload EDO Credit Memo/Write-up.

Question 11: Is this business owned by another entity or corporation?

Question 12: If yes, provide the following details below. Legal name of the entity, state registered in, EIN, and address.

Question 13: Owner 1: First name.

● First name of the borrower.

Question 14: Owner 1: Last name.

● Last name of the borrower

Question 15: Percentage of ownership.

● For Owner 1 (anyone with 20% or more ownership must complete this question.)

Question 16: Owner 2: First name.

● First name of the borrower

Question 17: Owner 2: Last name.

● Last name of the borrower

Question 18: Percentage of ownership.

● For Owner 2.

Question 19: Owner 3: First name.

● First name of the borrower.

Question 20: Owner 3: Last name.

● Last name of the borrower.

Question 21: Percentage of ownership.

● For Owner 3.

Question 22: Owner 4: First name.

● First name of the borrower.

Question 23: Owner 4: Last name.

● Last name of the borrower.

Question 24: Percentage of ownership.

● For Owner 4.

Question 25: Owner 5: First name.

● First name of the borrower.

Question 26: Owner 5: Last name.

● Last name of the borrower.

Question 27: Percentage of ownership.

● For Owner 5.

Question 28: Business name.

● Name of the business to be funded.

● As it appears on the Utah Business Search website.

Question 29: Business Employer Identification Number (EIN).

● EIN of the borrower Do not provide a business EIN if it is a Social Security number

Question 30: Business Utah Entity Number

● As listed Utah Business Search website.

Question 31: Business address line 1.

● Street address of the borrower’s main office or location of the borrower that is primarily benefiting from the USBC funds. If real estate construction financing is involved, enter the street address of the project.

Question 32: Business address line 2.

● See above.

Question 33: Business city.

● City of the borrower.

Question 34: Business state.

● State of the borrower.

Question 35: Business zip code.

● Zip code of the borrower.

Question 36: Business NAICS code.

● 2017 North American Industry Classification System (NAICS) codes for the borrower’s industry. To find the borrower’s NAICS code, visit https://www.census.gov/naics/

Question 37: Brief description of business.

● Please briefly describe the business to be funded.

Question 38: The year the business was opened.

● Year in which the borrower commenced operations.

Question 39: Business type: Form of business organization. If other, please describe your form of business organization. (Treasury Guidelines p. 22)

● Legal entity type of the borrower (multiple choice). Please note that the borrower must be a small business or nonprofit to qualify for this program.

Question 40: Does this business have a DBA?

● A DBA is “Doing Business As” which lets you conduct business under a different identity from your own personal name or your formal business entity name.

Question 41: If yes, list them below

Question 42: Is this application for an equipment loan?

Question 43: Is this application a real estate loan?

Question 44: If yes, please select one from the dropdown.

Question 45: If the construction of a new building, the percentage of occupancy (%).

● The small business must occupy and use at least 60% of the total rentable property.

Question 46: If renovation of an existing building, percentage of occupancy (%).

● The small business must occupy and use at least 51% of the total rentable property. business.utah.gov/usbci

Question 47: Is there a lease?

Question 48: Primary purpose of the loan. If other, please describe the purpose of the loan.

● Please indicate the primary purpose of the USBCI-supported loan that the borrower obtained.

Question 49: Secondary purpose of the loan. If other, please describe the purpose of the loan

● Please indicate the secondary purpose of the USBCI-supported loan that the borrower obtained.

Question 50: Climate-aligned investment.

● Please indicate whether the USBCI-supported loan supports a business that makes climate-aligned investments. Climate-aligned investments may reduce greenhouse gas emissions or promote adaptation to climate change or energy transitions. This could be either in the business’s activities (including its production processes and use of energy, inputs, supply chain services, and/or actions to increase resiliency) or by supplying products and services that contribute to lower emissions. Climate-aligned investments can include:

○ Investment supporting weatherization

○ Energy-efficient prefabrication or manufacturing

○ Supply chain use, processes, or production, resulting in lower emissions

○ Energy site transitions

○ Sustainable and/or climate-smart agriculture and forestry

○ Renewable energy development or implementation (including wind, solar, hydroelectric, biomass, geothermal, and other low-carbon technologies)

○ Electric vehicle innovation or use

○ Other investments that aim to build climate resilience, support adaptation to extreme weather and climate events, and/or mitigate climate change

Question 51: Energy- or climate-impacted communities.

● Please indicate whether the USBCI-supported loan supports a small business in a community facing local job losses or business revenue declines due to physical or transition impacts from climate change, including shifts in energy production. Examples of such local job loss or revenue declines include:

○ Declines due to changes in the economics of producing certain agriculture or food

○ Other natural resource goods

○ Chemical inputs

○ Manufactured products

business.utah.gov/usbci

○ Service sector outputs due to acute or chronic climate impacts, costs, regulations, or shifts in demand.

● Examples of shifts in energy production include any transition away from fossil fuel extraction, refining, or fossil-based energy generation in the oil, gas, and/or coal sector.

Question 52: Business revenue.

● Borrower’s annual gross revenues for the fiscal or calendar year prior to the closing of the loan. This may be the most recent year for which taxes were filed.

Question 53: Business net income.

● Borrower’s net income for the fiscal or calendar year prior to the closing of the loan or investment. This may be the most recent year for which taxes were filed.

Question 54: Full-time equivalent employees.

● Borrower’s full-time equivalent employees (FTEs), rounded to the nearest whole number, at the time of the closing of the USBCI-supported loan. This is determined by adding the number of full-time employees and the number of part-time and seasonal employees as a fraction of a full-time employee.

● For example, if a business has 100 employees working full time (assume a full-time week of 40 hours) and 50 employees working 20 hours per week, the total number of FTEs would be 125. For seasonal employees, the FTE count is based on a 2,080-hour year, so an employee who works 520 hours per year counts as 0.25 FTEs.

Question 55: Expected number of jobs created.

● Number of full-time, part-time, and temporary jobs expected to be created as a direct result of the USBCI-supported loan or investment within two years from the date of the loan closing.

Question 56: Expected jobs retained.

● The number of full-time, part-time, and temporary job losses averted as a direct result of the USBCI-supported loan (not including jobs that were not at risk of being lost).

Question 57: Please attach the borrower's signed "Borrower Use of Proceeds and Conflict of Interest Certification" form.

Question 58: Please attach the borrower's signed "Borrower Sex Offender Certification" form.

Question 59: Does this borrower have a guarantor?

business.utah.gov/usbci

Question 60: If yes, please list the borrower's guarantor

● Please list the guarantors’ first and last names.

Question 61: If yes, please attach the guarantor's signed "Guarantor Use of Proceeds and Conflict of Interest Certification" form.

Question 62: If yes, please attach the guarantor's signed "Guarantor Sex Offender Certification" form.

Section 4: Loan Information

Question 63: Loan type. If other, please describe:

● Please indicate the type of loan:

○ Term with a specific repayment schedule and a fixed or floating interest rate

○ Revenue-based, income-based, or other performance-contingent payments

○ Line of credit

○ Bridge, venture debt, or other debt whose repayment is contingent on the event (with or without interim interest payments)

Question 64: Total "project" loan amount ($).

● This is the loan amount necessary to finance the project. This may be different than the “Loan Amount Enrolled in the USBCI LPP” if there is more than one source of financing for the project. This must be under $5 million.

Question 65: Total “loan” amount ($).

Question 66: Total amount of participation ($).

● The “Total Loan Amount Enrolled in USBCI LPP” refers to the portion of the loan enrolled in the USBCI LPP. This may be equal to or less than the total “project” loan amount and must be under $5 million.

Question 67: Total amount of participation (%).

● The “Total Loan Amount Enrolled in USBCI LPP” refers to the portion of the loan enrolled in the USBCI LPP. This may be equal to or less than the total “project” loan amount and must be under $5 million.

Question 68: Total loan term (months).

● Duration of the loan term in months. Provide an estimate if repayment depends on the borrower’s revenue or performance activity business.utah.gov/usbci

Question 69: Total loan amortization (months).

● Duration of the loan amortization in months. Provide an estimate if repayment depends on the borrower’s revenue or performance activity.

Question 70: Loan blended rate.

● Annual percentage rate (APR) charged to the borrower. The APR is the yearly interest calculated from a sum charged to borrowers, including fees.

Question 71: Variability of interest rate.

● Indicate if the interest rate is a fixed interest rate, an adjustable interest rate, or both a fixed interest rate and an adjustable interest rate.

Question 72: Interest rate on EDO share (%).

● Please provide the interest rate charged to the borrower.

Question 73: Interest rate on primary lender share (%).

● Please provide the interest rate charged to the borrower

Question 74: Repayment schedule.

● Please describe the borrower’s repayment schedule.

Question 75: Frequency of interest payments.

● Please describe the frequency of interest payments paid to the lender

Question 76: Other repayment terms.

● Please describe any additional material terms that exist for this loan (e.g., percentage of monthly revenues) if the loan is revenue-based or performance-based. If none, please indicate so.

Question 77: Maximum interest rate permitted under the loan.

● Please describe the maximum interest rate permitted under this loan, not including fees, penalty interest, or other charges.

Question 78: Total origination charges.

● The total dollar amount of charges imposed directly or indirectly by the provider at or before origination as an incident to or a condition of the extension of credit, including charges paid by the borrower at or before origination or that are financed. Charges that are imposed indirectly by the provider include charges by a third party that may pass through the provider to the borrower or that are billed separately.

business.utah.gov/usbci

Question 79: Total fees charged by the EDO, including the 0.5% fee charged by the state ($).

Question 80: Total fees charged by the EDO, including the 0.5% fee charged by the state. Please calculate percentages as a percentage of the total project dollar amount (%).

Question 81: Total fees charged by the primary lender ($).

Question 82: Total fees charged by the primary lender. Please calculate percentages as a percentage of the total project dollar amount. (%).

Question 83: Total upfront fees or charges paid by the small business. This number should be the sum of fees charged by the EDO and the primary lender fees. Please note fees cannot exceed 3% for loans greater than $25,000 or $750 for loans under $25,000.

Question 84: Upload an itemized list of all fees charged to the borrower.

Question 85: What percentage of the loan is secured?

Question 86: Real estate security?

Real Estate Security means any security of a company that derives at least 50% of its revenues from the ownership, construction, financing, management, or sale of commercial, industrial, or residential real estate or has at least 50% of its assets in such real estate

Question 87: If yes, provide details below

Question 88: Other security

Question 89: If yes, provide details below

Question 90: Estimated date of first disbursement (date of loan).

● The date that the funds for the USBCI-supported loan were disbursed from the provider to the borrower.

Question 91: Estimated maturity date.

● Please provide the date on which the borrower’s final payment is due.

Question 92: Will loan funding be used at the business address listed above?

● Please indicate yes or no.

business.utah.gov/usbci

Question 93: If no, where will the loan be used? Please provide the address, city, county, and zip code.

Question 94: Additional government funds.

● The dollar amount of funding from other public or government sources invested at the same time as the SSBCI-supported loan.

● (Treasury Guidelines p. 42-43)

Question 95: If yes, provide details below.

Question 96: Concurrent private financing.

● The dollar amount of any private financing that was caused by or resulted from the SSBCI-supported loan and that occurred at or around the same time as the SSBCI-supported loan.

● (Treasury Guidelines p. 26-28)

Question 97: If yes, provide details below

Question 98: Please certify by typing your name below that the applicant does not have the ability to obtain some or all of the requested funds on reasonable terms from non-federal sources or the SBA without USBCI assistance. If exempt, please list N/A.

● Written signature.

● See the “USBCI LPP Policy” for the policy regarding exemptions.

Question 99: What capital access barrier does USBCI LPP help the borrower overcome?

Section 4: Declaration of Truth and Accuracy

Question 100: Type your name as a signature attesting to the preceding statement.

Question 101: Title of signing organization representative.

Question 102: Financial institution I am certifying on behalf of.