The Salt Lake City Emergency Loan Program for businesses is now open for applications.
This rapidly evolving COVID-19 crisis demands deliberate action. Not delays. This week, the Salt Lake City Council supported Mayor Erin Mendenhall’s request to release $1,000,000 in funding to support local businesses during this difficult time.
“More than 90% of the 17,000 licensed businesses in Salt Lake City are small businesses and we want to make sure they have every opportunity to withstand any interruption in the coming weeks and months.” Mayor Mendenhall said.
The city has created a zero percent interest, flexible-term loan program to begin the process of helping businesses offset revenue losses as a result of COVID-19.
“We recognize this won’t solve all the problems businesses are facing,” said Acting Director of the City’s Department of Economic Development Ben Kolendar. “But we know relief is needed quickly and this program will provide that relief in a matter of days, not weeks or months.”
The Emergency Loan Program will act as a stop-gap funding source as more robust federal programs come online, including the Small Business Administration’s $50,000,000,000 Disaster Loan Assistance program (https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl).
Speed is key to deploying these local funds to make a real impact.
Loan applications can be found at https://www.slc.gov/ed/elploan/
For ongoing COVID-19 Information and Resources, please visit https://www.slc.gov/ed/COVID19/
We will be receiving applications until Monday, March 23rd at midnight.
Loan Program Guidelines:
- Loan Amount: Up to $20,000
- Interest Rate: 0%
- Loan Term: 5 years
- Payment: Deferred 90 days after State of Emergency
- Approved Uses: Working capital, Marketing, Inventory
- Collateral Requirement: Personal guarantees of any owner who has 19% equity or greater of business
- NOTE: Applying for this loan will NOT disqualify you for additional funds from the SBA
Basic Loan Eligibility:
- Businesses (including nonprofit organizations) eligible for the loan program must be located within the city limits of Salt Lake City with 50 employees or fewer. It is not necessary for the business owner to live in the City.
- Applicants do not need to be U.S. citizens but must possess an ITIN.
- The applicant may be a for-profit business or a revenue producing venture of a non-profit organization. Art-based businesses and organizations are also eligible to apply.
- Businesses that already have a loan with the City can apply for a new loan if the other criteria is met, the borrower has been current on all payments, and the total of the loans to the same business does not exceed the maximum loan amount (for the EDLF program).
- Loans will not be given to different entities that are related in the same business location and business purpose in excess of the Maximum Loan Amount as added together. For example, when one entity owns a building and another entity owns the business and the principals of the entities are the same or related to the business purpose, only one loan maximum amount will be considered.
Required attachments include:
- Profit & Loss Statements for previous year, and most recent quarter or month
- Balance Sheet from previous year (2019), and most recent quarter or month
- Previous year’s business and personal tax returns
- Lease (copy of lease agreement) or mortgage statement
- Copy of driver’s license or valid government ID
- Copy of your Salt Lake City Business License
- Signed W-9 form
Criteria to be considered by loan committee:
- Financial impact from COVID-19 and to what extent
- Narrative impact statement on business
- Use of funding
- Business well-being pre COVID-19
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: COVID-19, Local Businesses, Salt Lake City Council, Salt Lake City Mayor Erin Mendenhall