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Utah Small Business Loans

Utah presents an excellent opportunity for entrepreneurs looking to start or grow their own small business. With over 4,000 local commercial or business lenders and some of the lowest business tax rates within the country, the state of Utah provides all the necessary resources necessary for small business owners to succeed.

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 Lenders in Utah

Regional Utah banks and financial companies are a good option when it comes to applying for a small business loan in Utah. They usually offer reasonable interest rates and fair terms. Yet, the small business loan requirements 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:

1. Utah CDC

Utah CDC is a Certified Development Company that is devoted to helping small businesses to buy land, a building, and even equipment by granting SBA (Small Business Administration)  504 loans.

The company’s main goal is to assist in the expansion of local businesses looking to increase their operations. As such, their SBA loans come with favorable terms and rates. While the rates can vary over time, Utah CDC continuously updates the information on their website. For example, as of November 2021, you can expect to receive a 504 loan with a 20-year term at an interest rate of only 3.03%. You also have an option of taking out a loan with a 25-year term, at an interest rate of 3.16%.

2. Bank of Utah

Bank of Utah is a federally-insured community bank offering loans and lines of credit to local small businesses. The bank offers a broad range of short- and long-term funding solutions to accommodate the specific needs and capabilities of different businesses.

Some of the financial products offered by the Bank of Utah include:

  • Commercial real estate loans: including construction, long-term, and bridge loans, as well as acquisition and development (A&D) loans
  • Business lines of credit: intended to help small businesses to replenish inventory, support accounts receivable, pay bills, purchase new equipment, and even increase cash flows
  • Equipment loans: to finance equipment repair or replacement expenses.

      3. First Utah Bank

      First Utah Bank is a preferred SBA lender, offering a broad range of SBA loans to small business owners within the state. The bank will work with you to find the best loan option to fit the unique needs of your business. As such, you can choose among four different types of SBA loans: 7(a) Loan Program, 504 Loan Program, SBA Express, and SBA Export Express. 

      These loans come with various limits and repayment terms and can be used to:

      • Expand or modernize facilities
      • Purchase or construct a commercial building
      • Purchase an existing business
      • Manage seasonal cash flow
      • Consolidate debt to increase cash flow
      • Finance receivables or inventory
      • Purchase equipment, machinery, and fixtures,
      • and much more.

      4. Central Bank

      The Central Bank has been helping Utah-based businesses grow for 128 years. The bank offers a variety of business loan products and provides loan experts available to help you find the best option.

      Small businesses are welcome to apply for one of the following loan options:

      • Commercial real estate loans
      • Equipment loans
      • Business lines of credit
      • Business credit cards
      • Small Business Administration (SBA) loans

      5. Goldenwest Credit Union

      Goldenwest Credit Union is a federally-chartered credit union and a preferred SBA lender operating branches all over the state of Untah.

      In addition to Small Business Administration loans, Goldenwest offers:

      • Commercial construction loans: to help businesses finance commercial buildings
      • Commercial real estate loans: to help with business real estate acquisitions
      • Business lines of credit: for business working capital
      • Investment property loans: at competitive rates, up to 80% loan to value
      • Equipment loans to help small businesses purchase vehicles and other equipment

      6. Utah First Credit Union

      Utah First Credit Unions offers flexible options on Small Business Administration loans to fit the needs of local small businesses. As such, you can choose among:

      • SBA Express Loans and Lines of Credit. These loans can range up to $350,000, with loan terms of up to 7 years.
      • SBA 7(a) Loans. SBA 7(a) loans are intended to help entrepreneurs build or expand their small businesses. They come with terms of up to 25 years for real estate, up to 10 years for equipment, and up to 7 years for working capital.
      • SBA 504 Loans. SBA 504 loans come with borrowing limits of up to $5,000,000 and terms of up to 25 years. This type of financing can be used to purchase large fixed assets, such as equipment or real estate.

      7. 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. These loans allow you to access more capital necessary for larger projects, with repayment terms ranging between two and 10 years. While the interest rates can vary, you should expect to pay up to 3% in origination fees.
      • Short-Term Loans. With short-term loans, you can expect repayment terms ranging between 3 and 18 months, and origination fees of up to 5%. 
      • Small Business Administration (SBA) Loans. The terms of government-backed SBA 7(a) and 504 loans can range between three and 25 years, with origination fees of up to 3%.

      8. GUD Capital

      GUD Capital is a company working with over 4,000 lenders who offer more than 12,000 loan products. With 75 years of experience, GUD Capital has loan specialists who will match you with the ideal loan product to find the financial solution that works the best for your small business.

      Through GUD Capital, you can access 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. 

      Top Online Utah Small Business Loan Options

      While traditional banks and credit unions often offer more favorable rates and terms, online lenders are an excellent alternative for Utah small businesses looking for fast approval and quick disbursement of funds. 

      So, when looking for a small business loan in Utah, consider one of the following online lending platforms:

      1. Fundera - Best for Startup Loans

      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. Biz2Credit - Best for Short-term Loans 

      Ever since 2007, Biz2Credit has been providing small business loan options with high borrowing limits and reasonable interest rates. In addition to great lending products, the fast turnaround times and simple application process have made this online lender an incredibly popular option among Utah-based entrepreneurs.

      With Biz2Credit, you can choose among three financing options:

      • Term loans. These loans can range up to $250,000 and are meant to provide funding for small-to-medium projects.
      • Commercial real estate loans. These loans can range up to $6 million and are intended to fund commercial real estate acquisitions.
      • Working capital loans. Working capital loans can fund significant projects as well, with impressive limits of $6 million.

      The interest rates for all three financing options are reasonable, starting at only 8.99%. Should you get approved, you can expect to see the funds in your bank account within 72 hours after the application submission.

      3. Credibly - Best for SBA Loans

      For over 11 years, Credibly has been providing fast and affordable loans to small business owners within the state of Utah and beyond. With relaxed eligibility requirements and great repayment terms, small business loans from Credibly come in the following formats:

      • SBA loans. Backed by the government, SBA loans often offer more favorable terms than other types of financial assistance. While Credibly doesn’t disclose the maximum amount of their SBA-type loans, they do specify that the terms can vary between 2 and 25 years.
      • Working capital loans. Working capital loans are intended to help business owners meet their short-term financial needs. These loans come with terms between 6 and 18 months and a maximum loan amount of $400,000.
      • Long-term business expansion loans. This type of loan is intended to help entrepreneurs expand their small businesses, - and, naturally, the application requirements include a detailed business plan. The loan amount can vary between $150,000 and $5,000,000, with repayment terms of 3 to 10 years.
      • Other types of loans. In addition to the financial products above, Credibly offers business lines of credit, invoice factoring, equipment financing, and merchant cash advances.

          4. Fundbox - Best for Business Line of Credit

          Fundbox offers business lines of credit for up to $100,000, with repayment terms ranging from 12 to 24 weeks. With this online lender, prospective borrowers need to have a credit score of at least 500 and must operate in the United States (or a U.S. territory). 

          Fundbox is incredibly popular due to its easy qualification criteria. For example, a business doesn’t have to exist for a specific time before it can apply for a loan. All in all, the low borrower requirements make Fundbox the first option for many small businesses. 

           

          Additional Utah Small Business Resources

          In addition to obtaining financing from traditional banks and credit unions, Utah small businesses have a variety of financial and non-financial resources to choose from.

          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, as well as mentions different lenders for small business loans. 

          Women’s Business Center of Utah (WBCUtah) 

          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.

          Utah Governor’s Office of Economic Development Bridge Loan Program

          The Utah Governor’s Office of Economic Development offers bridge loans under their “ Utah Leads Together Small Business Bridge Loan Program” available for local small businesses. The program uses state funds to provide the necessary gap funding. As such, Utah businesses and 501(c)3 nonprofits that have experienced severe economic impact due to the Covid-19 pandemic are welcome to apply. 

          Utah Microloan Fund (UMLF)

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

          The UMLF assists underserved and low-income communities in Utah. The fund provides business training and is ready to lend 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.

          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, as it shows them that you are likely to repay the loan on time. Having a solid credit score makes getting a loan a lot faster and easier. 
          • 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

          At times, any business needs cash to expand, bur property, or build premises. Luckily, Utah is a great state for small businesses to grow, with its large number of traditional lenders, private investors, and online companies. For example, numerous Utah small business loan options are available to choose from, ranging from traditional banks and credit unions to convenient online platforms. In addition, entrepreneurs can also benefit from state-run programs that offer advice, training, and sometimes funding.
          All in all, the state of Utah provides all the financial and non-financial support necessary for small businesses to grow and flourish.