SALT LAKE CITY – 52 Salt Lake City businesses have been selected to receive immediate funding through Salt Lake City’s Emergency Loan Program to offset revenue losses during the COVID-19 crisis.
Applicants were awarded funding in two rounds, with nearly $500,000 in total being allocated to 26 businesses in each round.
“We know there are many businesses hurting right now and I want them to know we’re here for them,” Mayor Mendenhall said. “One of our highest priorities during this crisis is helping to minimize the impact to our local business community.”
In all, 727 businesses applied for the loan with a total request of nearly $13,000,000.
The businesses which received loan approval were among the most deeply impacted by the COVID-19 crisis in Salt Lake City and were evaluated by business type, financial need, narrative, proposed use of funds and credit score.
“COVID has closed my retail, wholesale and event sales revenue streams, for an indefinite period of time. I only am able to sell online,” Mineral and Matter owner Stacey Foster said. “This loan is enabling me to keep my 1099 production employee on payroll, allowed me to continue working with a local graphic design company to redesign and optimize my website and will allow me to hire a local freelance paid ads marketing specialist to market the new website. I am hopeful that building out my online revenue stream during this time will make it possible for me to retain my brick and mortar and wholesale operations until COVID-19 is over and they can reopen.”
Also of note, 44-percent of the businesses funded are owned by women, 21-percent of recipients are racially diverse and 25-percent of the businesses which received the loan are located west of I-15.
The Department of Economic Development team overseeing the loan application process thoroughly reviewed all applications and worked with individual businesses that submitted incomplete applications during the three-week process.
The loan review committee consisted of members of the Salt Lake City Council, the Redevelopment Agency of Salt Lake City, the Salt Lake City Arts Council, the Downtown Alliance and the Salt Lake City Business Advisory Board.
“While we are extremely proud to help more than 50 businesses during this difficult time, the reality is we weren’t able to fund 675 businesses that applied and still need help,” Acting Director of Salt Lake City’s Department of Economic Development Ben Kolendar said. “That’s what keeps me up at night as we continue to look for solutions for our business community.”
Businesses were able to apply for up to $20,000 through the program which has a five-year repayment period.
The repayment period doesn’t begin until 90 days after Salt Lake City’s state of local emergency is lifted. The Salt Lake City Economic Development team will assist local business owners in applying for federal SBA loans, which information can be found on the city’s website.
Emergency Loan Program By the Numbers:
- Total Applicants: 727
- Total Loan Request: $12,853,355
- Loans: 52 (26 per round)
- 44% female
- 21% racially diverse
- 25% West of I-15
Total Loan Amount: $992,000 (some approved businesses requested less than $20,000)
About Salt Lake City Department of Economic Development Formed in 2016, Salt Lake City’s Department of Economic Development is focused on building Salt Lake City as a vibrant, beautiful, prosperous, diverse, and authentic place – a place that is economically accessible to everyone. Known as the “Crossroads of the West,” Salt Lake City is strategically located for businesses to succeed. SLCDED works to streamline processes, provide excellent customer service, and offer an array of resources and services to recruit and retain businesses in the City, and ensure they have the tools to thrive. For more information, visit www.slc.gov/ed
###Tags: Salt Lake City’s Emergency Loan Program, The Department of Economic Development