Search
utah

Utah Small Business Loans

Utah has more than 4,000 commercial and business lenders. It also has among the lowest tax rates for business owners in the United States. It has a flourishing, diverse economy with a robust, and educated labor force. Utah also provides many resources for those seeking advice on how to apply for and get loans.

At a glance There are plenty of options available for small business owners who want to borrow money to startup or expand their Utah based business. Some banks may have stringent lending criteria, yet luckily there are many other places you can look to for loan options. These include private loan companies, who also offer expert advice. This article explores a range of options and resources to help small business owners decide where to get a small business loan in Utah.

Small Business Loans From Traditional Banks in Utah

Regional Utah banks are a good option when it comes to applying for a small business loan. They usually offer reasonable interest rates and fair terms. Yet, the small business loan requirements in Utah that traditional banks demand, can be difficult to meet. 

You can expect complicated paperwork and a lengthy application process. You also typically need a high credit score to be eligible for such loans. Yet, if you do manage to qualify for these loans, it may be worth your while, as they generally come with reasonable rates. 

You may wish to apply to one of the following banks for Utah small business loans:

Utah CDC

Utah CDC notes that it can help a small business buy land, a building, and even equipment by granting an SBA 504 loan. Find out how here.  

Bank of Utah

This is a federally-insured community bank. It offers loans and a business line of credit. See here for details.

First Utah Bank

This preferred lender for SBA offers a range of SBA loans to clients in Utah. See here for details.  

Central Bank

This bank has been helping businesses grow for 128 years. It has loan experts available to work out the best option. Find out more here.

Goldenwest Credit Union

This federally chartered credit union is a preferred SBA lender. It grants low-interest SBA loans and real estate loans. Business Visa rewards cards, merchant services, and insurance services are available too. It operates branches all over Utah. Find out more here.

Mountain America Credit Union

Mountain America has loan relief options for small businesses faced with financial challenges. See here for details.

Utah First Credit Union

It offers flexible options on SBA 7(a) and CDC/504 loans to fit the needs of small businesses. See here for details.

Companies That Originate or Grant Loans to Small Businesses

Many reputable companies in Utah provide grant loans to small businesses. Here we highlight the top companies operating in this sphere.  

AdvancePoint Capital

AdvancePoint Capital provides services to the small business community across the State of Utah. It offers various loan options for small businesses, including:

  • Long-Term Loans - long-term loans allow between 2 - 10 years for repayment. You can access more capital using a long-term loan than you can with a shorter-term business loan. Monthly payments are affordable and can be used to fund large long-term projects. Different lenders provide different Interest rates. There are origination fees of up to 3%. It takes three days to a few weeks to process a loan application, depending on the lender.
  • Short-Term Loans - short-term small business loans allow between 3 - 18 months for repayment. This option is popular amongst small businesses who are unable to get loans from traditional sources, because of credit or documentation issues. The origination fees are up to 5%. Application processing may take place on the same day, or it could take 24 - 48 hours.

 

  • Small Business Administration (SBA) Loans - the Small Business Administration (SBA) office isn’t a lender. It’s a federal agency that provides programs, guidelines, and guarantees for business loans to approved lenders. Without Small Business Administration (SBA) guarantees, lenders wouldn’t be willing to grant loans under the SBA’s terms. 

Through the Small Business Administration’s SBA 7(a) and 504 programs, Utah businesses raised over $200 million in business loans. The terms of the loans are three to 25 years. Origination fees are up to 3%. The SBA prefers a good to excellent credit rating but considers all levels of creditworthiness. It can take from a week to a month to process a loan application. See here for details.

GUD Capital Utah Business Loans

This company provides a wide range of loans, including bank loans, SBA loans, asset-based loans, and private loans. A small business owner may find any of these helpful. GUD also lists alternative Utah loans from non-bank lenders. 

Most alternative business lenders focus on providing Utah businesses with working capital. Fintech lenders, marketplace lenders, and mid-prime are just some alternative lenders. See here for details.

Top Utah Small Business Financial Resources

Utah Edition of the SBA Small Business Resource Guide

The guide contains a wealth of information about Utah small business grants and how to grow a small business. It lists organizations and resources, including lenders. It also features the success stories of local Utah small businesses and advises on all aspects of business, including how to get a loan. 

One page in the guide features the SBA Utah District Office. It lists impressive statistics on the work done in the state to boost and grow small businesses. It mentions different lenders for small business loans. See here for details.

Women’s Business Center of Utah

WBCUtah helps small businesses owned by women. It strives to create opportunities for and build the confidence of female entrepreneurs. It also provides female business owners with free business advice and low-cost training and e-learning. The center is partially financed via an agreement with the U.S. Small Business Administration partnered with the Salt Lake Chamber.

WBCUtah does not offer loans. However, it’s in-depth training and advice cover all aspects of financing that a small business owner needs to know. The center assists women business owners in all 29 Utah counties. It has offices in Salt Lake City and Cedar City. It offers online training and has a dozen virtual centers. See here for details.

Utah Governor’s Office of Economic Development Bridge Loan Program

The Utah Governor’s Office of Economic Development offers a bridge loan. Utah businesses and 501(c)3 nonprofits that have experienced severe economic impact due to the Covid-19 pandemic qualify. Named the Utah Leads Together Small Business Bridge Loan program, it uses state funds to provide gap funding.

See here for details.

Utah Microloan Fund

The UMLF is a “lender of last resort.” This means it tries to help business owners who aren’t able to receive financing from banks. This could be because of poor credit, poor business history, or lack of collateral. 

It assists underserved and low-income communities in Utah. The UMLF provides business training. It also lends up to $50,000 to entrepreneurs and small business owners that don’t qualify for loans from traditional funding sources. Because the UMLF takes on loans with higher risk than a bank loan, their interest rates are typically 2-8% higher. 

See here for details. 

Summary Table of Small Business Loan Options

Categories Advantages Disadvantages

Banks

Preferred lenders

Stringent loan criteria

Companies

Flexible loan plans

Interest rates can be higher

Financial resources

Source of help and advice

Not all offer loans

Online lenders

Ease of application at home

Must check credentials 

Top Online Utah Small Business Loan Options

1. Fundera

Fundera functions as an online marketplace for small business loans. The company has the resources needed to make the lending process easy to understand. The loan application process is also straightforward. 

Fundera offers a large variety of lending options. These include SBA loans, merchant cash advances, business term loans, and small business startup loans.  

2. OnDeck  

OnDeck is an online small business lending company that operates globally. It offers two types of loans: short-term loans and revolving lines of credit.  OnDeck is hard to beat for fast loans. They are also more accommodating than other lenders and often assist people who don’t qualify elsewhere. They typically provide you with approval after 2-3 days.

3. Lendio

Lendio itself isn’t a lender. It’s a loan aggregation site. It puts a potential borrower in touch with a network of more than 75 lenders, like Bank of America, American Express, and BlueVine. The service is free. 

Applying for a loan via Lendio doesn’t affect your credit score. You can apply for startup loans, commercial mortgages, invoice financing, and acquisition loans. How long you have been in business, your credit score, and other considerations will determine the loan rates, terms, and fees you are offered. Lendio is based in Utah.  

4. Fundbox

Fundbox offers business lines of credit for up to $100,000. Its lines of credit repayment terms range from 12 to 24 weeks. Prospective borrowers have to have a credit score of at least 500. They also have to operate in the United States (or a U.S. territory). 

Fundbox is popular because it’s easy to qualify for one of its loans. A business doesn’t have to exist for a specific time before it can apply for a loan. The low borrower requirements make Fundbox a first option for many small businesses. 

 

5. Headway Capital

Headway Capital’s line of credit gives a small business round-the-clock access to working capital. Owners can draw funds at any time, within their credit limit, without having to reapply. The application takes only a few minutes and an approval decision is often immediate.  

How to Prepare for a Utah Small Business Loan

Here are a few practical steps to help increase your chances of getting a business loan:

  • Register your business - Registering is the professional way to make your business credible. It is also desirable to be registered when devising and running your advertising campaigns.
  • Improve your credit score - A good credit score also impresses a lender. It makes it fast and easy to get a loan when you have a solid credit score. A good credit score shows a lender that you are likely to repay your loan. 
  • Have a business plan - Setting out a business plan shows that you’re well-organized and serious about your business. It’ll inspire confidence in the lender, whether you’re meeting a representative in person or applying online.

The Bottom Line

There are a vast number of options in Utah for small businesses that want to acquire a loan. Many types of loans with different repayment options are on offer.

This guide has covered many of the top lenders in Utah, including online lenders, which are well worth considering. 

In this guide, we have also provided you with links that you can look at to find further information about funding opportunities.