Revolving Loan Fund for Businesses


 
Southwest-Utah-Microloan-Program
Click HERE to download the loan application form. (PDF file)

PURPOSE:
The Five County Association of Governments has a microloan fund. The purpose of this fund is to create permanent, long-term jobs within the southwestern region of Utah by providing needed financing to qualified businesses for eligible activities.  Loans made through the fund are intended to help when commercial financing proves unreachable.  Funds loaned at interest are repaid into the program and recycled to other businesses, thus allowing an on-going job creation program. Funds are available in Beaver, Garfield, Iron, Kane and Washington County, Utah. 

The Southwest Utah Microloan Program, was established by the Five County Association of Governments, and may provide loans up to $50,000, with most being somewhat less. The importance of these loans lies in their ability to offset the difficulty that small businesses experience in receiving traditional bank financing, especially of a start-up or relatively new business with limited history.

To find out more about the loan fund, please contact Gary Zabriskie, Director of Community and Economic Development at:  gzabriskie@fivecounty.utah.gov , or phone (435) 673-3548 ext. 126

ELIGIBLE COUNTIES IN UTAH:
Funds are available in:   Beaver, Garfield, Iron, Kane and Washington County, Utah.
EXAMPLES OF ELIGIBLE USES OF CAPITAL:
  • Purchase of machinery and equipment
  • Working capital (including inventory, accounts receivable, and labor)
BORROWING GUIDELINES:
  • RLF participation can be up to 90% of the total project cost, not to exceed $50,000.
  • Owner equity must be at least 10% of the total project cost.
INTEREST RATE:
  • The interest rate can be as low as 6.5% but varies according to the market rate and the borrowers ability to repay.
TERMS: 
  • Loans on capital assets are based on asset life.
  • Working capital loans range from 3-4 years.
  • Typically, loans will not exceed 4 years.
COLLATERAL:
  • A loan may be secured by a second mortgage and/or by a lien on assets.
  • Our microloans will take a subordinate position to other lenders.
JOB CREATION:
  • A borrower must agree to try and create and/or retain one job for every $30,000 (approx.)  of loan fund money.
FEES:
  • An application fee of 1.5%, of the Revolving Loan Fund amount, is due at closing. It is used to defray administration and monitoring expenses.
LENDING CRITERIA:
Applicants must have:
  • A sound business plan
  • Historical financial statements and/or (for startups and expanding businesses) sound financial projections (3 years)
  • Personal financial statements of owner
  • Vendor quotes on machinery and equipment
  • Management resumes reflecting the experience of those with 20% or more ownership in the company
  • Information on job creation and/or retention

APPLICATION PROCESS:
  • Click HERE to download the Application form.
                 (PDF files require a compatible reader to view/print)

FOR MORE INFORMATION CONTACT:

 Gary Zabriskie Gary Zabriskie,  EDFP
Microloan Fund Manager  

Phone/Voice Mail (435) 673-3548 ext. 126

Fax (435) 673-3540

E-mail:   gzabriskie@fivecounty.utah.gov


Office Address:
1070 West 1600 South, Building B
St. George, Utah 84770

(Located in the Tonaquint Center Hi-Tech Business Park located on south Dixie Drive to the west of AllConnect call-center building and just to the north of the Washigton County Board of Realtors/Huntsman World Senior Games office building)
Mailing Address:
P.O. Box 1550
St. George, Utah 84771-1550






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