Loans
Small business loans for Utah entrepreneurs
Starting a business or ready to grow? We provide financing to Utah entrepreneurs who may not qualify for a traditional bank loan. If the banks said no, we’re here to say yes.
Flexible funding for your business
Our microloans can help cover the costs of starting, operating, or growing a Utah business.
$50K
Loans up to $50,000 for eligible businesses.
$25K
Startups may qualify for up to $25,000 in their first year, with more available as the business grows.
6 yrs
Repayment terms of up to six years. No prepayment penalty.
10-14%
Current fixed interest rates generally range from 10% to 14%.
Every business and funding request is different. Loan amounts, rates, terms, and approval depend on the applicant and the needs of the business.
Eligibility
Could a UMLF loan be a fit?
We look at credit, collateral, and history like any lender, but we put the most weight on a solid business plan and the person behind it. Each application is reviewed case by case.
We help people who
- Are starting a new business and don’t have a long operating history
- Have an existing business that’s ready to grow
- Have been turned down by a bank or don’t meet traditional lending requirements
- Need a smaller loan than many banks provide
- Have limited collateral, a thin credit history, or past credit challenges
- Are willing to complete the application process and show how the business can repay the loan
To apply, you’ll need
- To be a Utah resident with a Social Security Number or ITIN
- A business registered in Utah with an IRS Employer Identification Number (EIN)
- An open business checking account at a bank or credit union
- No active bankruptcy in the last 12 months, and a plan for any late payments on your credit report
Collateral isn’t always required but can help. We’re unable to fund multi-level marketing businesses or real estate and building purchases.
Our Process
Five steps from first question to funding
We’ll walk you through each step so you know what to expect. The faster you submit, the faster things move.
1
Attend Loan Orientation
Orientation is required and held virtually every Tuesday at 9 AM. You’ll learn about our loan program, terms, eligibility, what an application requires, and get to ask our Loan Officer direct questions. Can’t wait for Tuesday? Review the slides first.
2
Fill out the inquiry form
Tell us about you, your business, and the funding you’re looking for. Once we’ve verified your orientation, we’ll add you to Lenderfit, our online application system.
3
Complete your application
You’ll submit your application and supporting documents: tax returns, financial information, a business plan, and cash flow projections, along with a $50 application fee. Our templates make the business plan and projections easier, and our Loan Officer can help you strengthen the application along the way.
4
Present to our team
Once your application is complete, we’ll schedule a 30-minute virtual presentation over Zoom. Tell us why you’re starting or growing the business, your background, how the loan will help, and walk us through your plan. Show us you know your numbers, your customers, and your competition.
5
Close and get funded
If approved, we’ll close your loan about one week after you submit the closing documents. Funds are usually released as you need them for the uses in your application, rather than all at once.
Frequently asked questions
About the fund
Who is the Utah Microloan Fund?
A nonprofit lender offering microloans to small businesses that can’t get traditional bank financing. We’ve been lending for over 35 years, we’re a certified Community Development Financial Institution (CDFI), and we serve all of Utah from our Salt Lake City office. We also provide free business classes and one-on-one coaching.
How are you different from a bank?
Our purpose is community impact, not profit, so we can take on more risk than a bank. We still look at credit, collateral, and history, but we put real weight on your business plan and character. Banks often want two years of financials; we work with startups and people a bank has already declined. Our rates are typically 2-8% higher than a bank’s, so if you can qualify at a bank, start with one of our partner lenders.
How is the fund funded, and how do you make money?
We’re a nonprofit, and our work is funded in part by grants and support from banks, foundations, government agencies, and other community partners. The interest and fees we earn on our loans help cover program costs, too. This funding helps us make loans, teach classes, and offer one-on-one advising to small business owners across Utah.
What is an underserved small business?
A business from a community that has historically faced barriers to credit, capital, and the other tools needed to grow. Reaching those businesses is the reason we exist.
Applying for a loan
What are the eligibility requirements?
You need to be a Utah resident with an SSN or ITIN, have a Utah-registered business with an EIN, have an open business checking account, and have no active bankruptcy in the last 12 months. We review your credit report with you and ask for a plan for any late payments. Collateral helps but isn’t always required. In some cases we may suggest starting with less funding or bringing on a strong co-signer.
How does the team make its decision?
We weigh how solid your business plan and cash flow projections are; traditional factors like credit score, collateral, education, and industry experience; your ability to repay even if the business doesn’t work out; and your character. Withheld information, a history of fraud, or a pattern of unpaid debts can count against an application.
What should my presentation include?
Why you want to start or grow the business, your background, how the loan will help, and your business plan. Show that you understand your numbers, your customers, your competition, and your market.
What if I need help with the business plan or cash flow projections?
We run free virtual classes on both topics, and our Loan Officer is happy to answer questions as you work. For more hands-on help, your local Small Business Development Center offers free one-on-one advising.
If approved, do I get my funds all at once?
Usually not. As an SBA microlender we have to document how funds are used, so money is released as you need it for the uses listed in your application. The full amount is generally not released at closing unless it’s been pre-approved.
Beyond the loan
Need other resources?
Along with funding, we provide free business classes twice a month, a digital library of past classes, advising, and connections to partners across Utah who can help with what we can’t.