If your business could use a financial boost as a result of lackluster sales during the COVID-19 pandemic, checking into the options the Southeastern Utah Association of Local Government is making available through their revolving loan fund might be for you. The funding has been made available to businesses in our area and through the federal government's CARES ACT.
And the SEUALG loans will help with start ups, you don’t have to be an existing business to qualify for a loan. If COVID-19 has created a niche you may be able to fill, SEUALG and SUEDD (Southeastern Utah Economic Development District) are financing start ups created in response to COVID-19 needs.
SEUALG’s Revolving Loan Program Manager, Camille Otto provided one such example that is currently being prepared for funding.
A company in San Juan County that handled tree trimming and removal as part of their services found that the changes brought on with safe practices due to COVID-19 were too limiting for the one tree trimming truck they operated so they took the service off of their menu of offerings to customers. With all the other services they were providing, the employer did not see the profit in putting on another couple trucks to be in compliance with restrictions. An employee realized a hole was there in the market and came up with the business plan and projections that would satisfy SEUALG’s decision makers. This person could see a way to make it work and at a profit. The numbers were convincing and now the funding is winding its way through Camille’s office.
If you are eligible, loans from as little as $10,000 ranging up to $150,000 can be made with fixed interest rates as low as 2.47%. The repayment periods can range from between 3 and 10 years depending on what the funding is used for.
Normally SEUALG and the SEUEDD do not want to compete with banks for your loans so avoid putting themselves out there as a first option, weighing turn down letters from other financial institutions in qualifying a borrower for SEUALG consideration. Not this time. Turn down letters from other financial institutions are not required for this program.
The application process can start with an email to Camille Otto at [email protected] requesting an application. You will be asked to provide the following:
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Statement of the project
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3 years projected cash flow
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3 years of tax income information: Business tax info for established businesses, personal income tax information for start ups.
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Completed application
Qualifying businesses will get the loan at competitive rates and payments can be delayed up to a year after the dispersal of the loan.
To find out if you qualify or to apply for the Revolving Loan fund go to SEUALG’s website.
