Key Terms
- The lowest rates for small business loans often come from those who have a strong credit history, a number of years in the business, and a profitable company.
- Small businesses have a wide range of resources available to them that can help with financing, budgeting, debt management, and more.
- Be sure to have a business plan to present to small business loan lenders to use as a way to showcase the financial stability and viability of your company.
Utah is an expansive state, totaling more than 84,000 square miles of area. This Mountain West state has a population of only 3 million people, which makes it one of the least densely populated areas of the country. There are two key areas where many live, including in the Wasatch Front, which is in the northern, central portion of the state and home to Salt Lake City, and in Washington County, which is located towards the southwestern region of the country. Located in the Great Basin, Utah, also known as the Beehive State, is an incredible place to live and grow a business with its fast growing metro areas and competitive cost of living.
Some of the largest economic sectors present in Utah include transportation, information technology, research, and mining, though tourism is growing, as is education. There are numerous large companies that call this state home. However, even with that presence, there are 324,821 small businesses located in Utah as well. These businesses provide jobs for 625,571 people in the state, which is about 20 percent of the state’s population, not just the workforce. These businesses are critically important to households and the economy as a whole, generating $27,147,061 in payroll each year, according to data from the Small Business Administration.
To be successful, many small businesses need to turn to small business lenders in Utah to help with capital access. There are numerous such lenders in the state offering highly competitive loans for a wide range of needs, including expansion, product development, new equipment purchases, and much more. The Small Business Administration data shows that, according to the latest three years of data, there are 3,159 small business loans active in the state, with a total loan volume of $2,367,963,343 with an average loan size of $749,953. These loans help to fund many needs of small businesses, enabling them to compete and thrive.
How small business loans work in Utah
A small business loan is a type of financial look. A business with under 100 employees typically can apply for a loan through a Utah small business lender. This could be a big bank, smaller bank or credit union, private lender, or numerous other types of lenders. The lender takes into consideration the business’s qualifications and ability to repay the debt. Then, they work to structure a business loan based on the risks, the need, and the ability to repay. Borrowers are the owner and the business, and they agree to repay the amount borrowed along with interest over a period of time, often 5 to 10 years.
Small business loans come in numerous forms, each one designed to meet the needs of the business applying. For example, an SBA loan is often an excellent choice for an established company that is generating revenue but wants to expand and grow. These loans have federal guarantees on them, which makes them far less risky for lenders to offer, helping to keep interest rates low. Other times, lenders can use asset-based loans to borrow at a competitive rate, such as equipment financing. The most common types of small business loans in Utah include:
- Traditional bank loans
- SBA loans from SBA.gov
- Business lines of credit
- Equipment financing
- Business short or long term loans
To obtain this funding, small businesses must show lenders they have the financial means to repay the debt. To do that, they will need to formally apply, often with a great deal of financial information such as bank statements, profit and loss statements, and balance sheets. Lenders want to understand how the company operates and makes money, too, which is why they will generally request a business plan that outlines the company’s organizational structure, its products and services, its market analysis that outlines competitors, and much more. Most lenders also want to know what the funds will be used for to determine if they will be used in a way that will help to grow success.
New entrepreneurs usually won’t have a strong enough track record to make a solid loan application. This means your loan options will be limited in the state of Utah. Startups typically cover cash flow with personal savings or credit cards. With a new business, SBA lending or business credit cards might also be out of reach based on eligibility rules.
Small business loans in Utah can be an expensive investment, even with competitively low interest rates. For that reason, every small business needs to learn who the best lenders are and then compare their lending options to find the best possible terms for their needs. There are lots of lenders willing and capable of providing exceptional support and flexible loan terms to meet most needs for qualified borrowers. Each lender has their own loan application, credit score rules, loan amounts, repayment terms, application process, rules around whether you can refinance, and other business financing rules. Doing your research on all financing options, including those through traditional financial institutions like credit unions and banks, will help you decide the right course of action.
10 Biggest small business loan lenders in Utah
Utah small business loan lenders ranked by loans issued in the state.
| Rank | Bank Name | # of Utah Loans | Avergage Interest Rate | Average Loan Size |
|---|---|---|---|---|
| 1 | Mountain America Credit Union | 93 | 5.96% | $543,846 |
| 2 | Zions Bank | 85 | 5.09% | $328,853 |
| 3 | Central Bank | 84 | 5.76% | $391,163 |
| 4 | Cache Valley Bank | 72 | 5.24% | $619,150 |
| 5 | America First Credit Union | 68 | 5.59% | $766,026 |
| 6 | U.S. Bank | 44 | 6.23% | $334,814 |
| 7 | State Bank of Southern Utah | 43 | 5.16% | $344,102 |
| 8 | KeyBank | 41 | 5.66% | $467,332 |
| 9 | Wells Fargo Bank | 35 | 7.46% | $307,926 |
| 10 | Rock Canyon Bank | 32 | 5.69% | $1,206,309 |
1. Mountain America Credit Union
Started in the 1930s, Mountain America Credit Union has grown to meet the needs of its customers in the states of Idaho, Montana, Arizona, New Mexico, Nevada, and Utah. With 100 branches, Mountain America Credit Union has the ability to meet the needs of all of its customers.
We reached out to Mountain America Credit Union to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
- While the bank offers small business products, we weren’t able to verify their experience with SBA loans specifically. If you are interested in working with them, we suggest reaching out and contacting the bank directly.
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
2. Zions Bank
Zions Bank, headquartered in Salt Lake City, Utah, has been providing banking services since 1873. Now with 122 locations in Utah, Idaho, and Wyoming, Zions Bank is able to meet all customers’ banking needs for personal and business accounts, including small business loans and checking and savings accounts.
We reached out to Zions Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
- Offers the SBA 7(A) Loan Program, SBA 504 Loan Program, SBA Express and SBA Export Working Capital Program.
- Loans can be used for working capital, business acquisition, equipment purchases or other purposes.
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
3. Central Bank
Having been in Utah County for over 130 years, Central bank is able to provide a number of services for its customers from its 6 locations. With business and personal banking options with all types of products, from loans to checking and savings, Central Bank can provide for its customers.
We reached out to Central Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
- Offers SBA 7(a) Loan, SBA 504 Loan, SBA Express Loan and SBA Veterans Advantage
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
4. Cache Valley Bank
Cache Valley Bank serves Utah and Idaho by providing for its customers’ banking needs. With 21 branches to choose from and a number of different products and services, Cache Valley Bank can help individuals and businesses have the tools they need to meet all of their financial needs.
We reached out to Cache Valley Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
- While the bank offers small business products, we weren’t able to verify their experience with SBA loans specifically. If you are interested in working with them, we suggest reaching out and contacting the bank directly.
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
5. America First Credit Union
Founded in 1939, America First Credit Union brought an option for banking needs to Salt Lake City, Utah. America First Credit Union now offers a number of products and services for its members, including loans, credit cards, savings and checking accounts, and other financial services.
We reached out to America First Credit Union to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
- We can offer a wide range of business products, such as business lines of credit, business vehicle loans, equipment and machinery loans and unsecured lines of credit.
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Other resources for small businesses in Utah
Whether your company is younger or established, there are often many financial decisions that need to be made, and having access to good information and reliable insights can make a big difference. Some of the best resources in Utah for small businesses are free.
The Small Business Administration in Utah is an excellent, government-backed organization that offers a wide range of resources online and in its local offices. There are informative tutorials and guides online to help with business formation, credit building, cyber protection strategies, and much more. There are also workshops that happen throughout the year worthy of exploring.
Another excellent resource is SCORE, an organization built by successful small business owners who want to help support newer and growing companies. They offer advice and guidance on building, starting, and managing companies in a wide range of industries. It’s possible to use the site to find a mentor or to connect with the local resources in Salt Lake City. There’s no cost to using this service either.
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Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.
