Revolving Loan Fund Home

Center for Local Business - Economic Development Loan Fund

The Salt Lake City Economic Development Loan Fund's purpose is to stimulate business development and expansion, encourage private investment, promote economic development, and enhance neighborhood vitality in Salt Lake City by making low-interest loans available to businesses.
 
Loans are available for:
  • New and existing businesses
  • Starting, maintaining, and growing a business
  • A business interested in relocating to Salt Lake City
  • Businesses impacted by road construction
  • Acquisition of real estate (land or buildings)
  • Signage, retail presentation, display work
  • Energy-efficient equipment upgrades and building retrofits 
  • Fixtures, furnishings and equipment (FFE)
  • Inventory
  • Working Capital
 
Review the links below for more information about process, timing and applications.
 
Loan Process

1. Complete and submit the Preliminary Evaluation Application

2. If the Preliminary Evaluation Application is approved, submit the following:

a. A completed Loan Application.

b. A Business Plan with the information outlined in the Loan Application, including 3-year financial projections.

c. The required Financial Documents, including tax returns, profit/loss statements, etc.

3. Call the City's Economic Development Manager to set up a time to review the completed application at (801) 535-7941

4. Your submitted Loan Application will be reviewed and corresponding documents will be distributed to the Economic Development Loan Fund Committee. The Loan Committee meets monthly or as needed to review loan requests. At the meeting, you will have the opportunity to meet with the Loan Committee to present your business plan and answer any questions. After your presentation, the Loan Committee will meet to evaluate the loan. You will be notified by either email or phone within 5-7 business days of the Loan Committee's decision.

 

Summary of the steps an applicant will take.
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Loan Options and Use of Funds

*For a PDF describing the types of loans offered, please visit ED Loan Types or see below. 

 

Operating/Working Capital Focused Loans


Utah Microenterprise Loan

Purpose: Start-up and small business loan

Amount: Up to $25,000

Term: 5 years

Interest Rate: Prime + 5-7

Collateral: No specific requirement, but will look at home, business equipment

Cash Requirement: None


Getting Into Business Loan

Purpose: Loan for the creation of a new business. Funds can be used for working capital, construction, marketing, machinery and equipment, landscape and property improvements.

Amount: $25,000-$50,000

Term: 5 years, 7 years

Interest Rate: Fixed rate prime + between -4 and +3

Collateral: Minimum 25% of loan amount

Cash Requirement: 10% cash or equivalent injection.


Grow Your Business Loan

Purpose:  Loan for the expansion and growth of existing businesses. Funds may be used for working capital, construction for business expansion, marketing, machinery and equipment, landscape and property improvements. Funds can be used to refinance debt as part of business expansion.

Amount: $25,000-$100,000

Term: 5 years, 7 years

Interest Rate: Fixed rate prime + between -4 and +3

Collateral: Minimum 25% of loan amount

Cash Requirement: 10% cash or equivalent injection.


Existing Business Loan

Purpose: Existing business loan program for businesses in need of more that $100,000. Funds may be used for working capital, construction for business expansion, marketing, machinery and equipment, landscape and property improvements. Funds can be used to refinance debt as part of business expansion.

Amount: Up to $101,000 - $250,000

Term: 5 years, 7 years

Interest Rate: Prime + between -5 and +3

Collateral: Minimum 50% of loan amount

Cash Requirement: --


Business Opportunity Loan Fund

Purpose: Incentives for larger businesses considering a relocation to or expansion in Salt Lake City.

Amount: $2,000,000 allocated to fund.

Term: Determined by the City Council

Interest Rate: Determined by the City Council

Collateral: Determined by the City Council

Cash Requirement: Determined by the City Council


Small Business Micro Loan

Purpose: A loan for businesses in need of a small amount of cash to be used for stabilizing cash flow, marketing, reduction of business debt, etc.

Amount: Up to $10,000.

Term: No longer than 3 years

Interest Rate: Fixed rate prime + between -4 and +3

Collateral: None required

Cash Requirement: None required


Business Relocation Assistance Loan

Purpose: Funds available for established businesses to move to a new location within the city or those from outside the city who are locating within the city limits.

Amount: Up to $100,000.

Term: No longer than 5 years, 7 years

Interest Rate: Fixed rate prime + between -4 and +3

Collateral: Minimum 25% of loan amount

Cash Requirement: 10% cash or equivalent injection


Real Estate, Construction, Property Improvement Focused Loans


e² RLF (Energy Efficient Renovation Loan)

Purpose: To encourage businesses with over 2 years of operating history in Salt Lake City to make energy efficiency and conservation improvements to their business location.

Amount: Minimum of $5,000 up to $100,000.

Term: 3 years

Interest Rate: Fixed rate prime

Collateral: Minimum 25% of loan amount

Cash Requirement: None required

*For more information on e² visit SLC Green for Businesses  


Construction Mitigation Loan

Purpose: A loan for businesses in an area being adversely impacted by road or transit construction.

Amount: Up to $20,000.

Term: 5 years

Interest Rate: 3%

Collateral: Minimum 25% of loan amount

Cash Requirement: None required


Real Estate & New Construction Loan

Purpose: Financing available to purchase land and/or construct a new building or tenant improvements.

Amount: Up to $100,000.

Term: Maximum 20 years amortizedloan with balloon payment at 10 years maximum.

Interest Rate: Fixed rate prime + between -4 and +3

Collateral: Minimum 25% of loan amount

Cash Requirement: Minimum of 10% equity either in land or cash.


Building Renovation Loan

Purpose: Funds available for a business to improve and renovate a current building. May coincide with RDA (Redevelopment Agency) financing options.

Amount: Up to $50,000.

Term: 10 years

Interest Rate: Fixed rate prime + between -4 and +3

Collateral: Minimum 25% of loan amount

Cash Requirement: 10% cash or equivalent injection


Storefront Microloan

Purpose: Retail presentation, signage, storefront enhancements.

Amount: Up to $5,000.

Term: No longer than 3 years

Interest Rate: Fixed rate prime + between -4 and +3

Collateral: None required

Cash Requirement: None required


 

 

Summary of the loans, requirements, and terms.
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Preliminary Evaluation
Depending on the legal structure of the business, each individual who owns 20% of more of the business, or are a guarantor, must have their credit checked and a report provided.

Businesses must be located within City boundaries. Any funds loaned must be used for business within the City and cannot be used for other locations of the business. Conditions might apply for businesses with additional location outside of city boundaries.

A City representative will contact you once your evaluation has been processed. Please allow up to 5-7 business days for the review of your preliminary evaluation.

Please open the Preliminary Evaluation Application and complete all required fields. Forms received via in-person, mail or email will be processed the same as electronic forms. All documents will be converted into electronic format upon receiving.
The Preliminary Evaluation Application must be submitted and receive approval prior to submission of the Salt Lake City Business Economic Development Loan Fund Application.
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Loan Applications

Economic Development Loan Fund - Loan Application (PDF)


*please provide an electronic copy of your business plan along with your loan application


 

Printable PDF versions of the EDLF Loan Application.
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