Revolving Loan Fund for Businesses
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, 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
