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.
Show Me Lenders
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.