Conducting Business

The Revolving Loan Fund Program (RLF) is a lending program through the Southeastern Utah Association of Local Governments (SEUALG) for start-up businesses and businesses with the desire to expand that are unable to receive financing from traditional lending institutions.  Retaining or creating jobs in the community is a criteria for the program.

• What Types of Businesses Qualify for RLF Financing?
  • Industrial/Manufacturing
  • Retail/Commercial
  • Service
  • Information Technology
  • Professional
• What Can I Use RLF Money For?
  • Purchasing of Land and Buildings
  • Construction and Renovation
  • Machinery and Equipment
  • Leasehold Improvement
  • Working Capital (Inventory, Operating Expenses, Employee Payroll)
• RLF Overview (attach pdf “rlf-page-handout-updated”)
• RLF Application (attach pdf “rlf-app revised”)
• Additional Information: SEUALG
• For additional information contact Camille Otto, 435-613-0031, [email protected]

San Juan County businesses can qualify for the Utah State Legislature's Custom Fit Program funds. Designed to be a training solution for startups, established, and growing companies. 

Custom Fit Training's goal is to help organizations develop a qualified employee base. Companies receive training consulting services and tuition assistance for high-quality, short-term, non-credit training that aligns with industry-specific needs. 

1. Customer Service
2. Industry Certified Employees
3. Developing a high-performing team through management and leadership skills. 

For more information or help finding training, contact Meghan McFall 

Email: 

Phone: 435-678-8102

Anticipated Training Form

Company Profile

Are you seeking to expand or relocate your business to rural Utah? The Enterprise Zones can provide:

• Incremental tax credits for new jobs paying above county average wage
• Capital investment tax credits

The following tax credits may be claimed by eligible businesses locating or expanding in enterprise zones on Utah state income tax forms: Please contact Jim Grover ([email protected]) for more information about applying for Enterprise Zone Tax Credits. Job Creation Tax Credits: (maximum 30 full time positions per tax year):

1. A $750 tax credit for each new full time position filled for at least six months during the tax year.
2. An additional $500 tax credit if the new position pays at least 125% of the county average monthly wage for the respective industry (determined by the Utah Dept. of Employment Security). In the event this information is not available for the respective industry, the position must pay at least 125% of the total average monthly wage in the county.
3. An additional $750 tax credit if the new position is in a business which adds value to agricultural commodities through manufacturing or processing.
4. An additional $200 tax credit, for two consecutive years, for each new position insured under an employer sponsored health insurance program if the employer pays at least 50% of the premium.

Other Tax Credits:

1. A tax credit (not to exceed $100,000) of 50% of the value of a cash contribution to a 501(c)(3) private nonprofit corporation engaged primarily in community and economic development, and is accredited by the Utah Rural Development Council.
2. A tax credit of 25% of the first $200,000 spent on rehabilitating a building which has been vacant for at least two years, and which is located within an enterprise zone.
3. An annual investment tax credit of 10% of the first $250,000 in investment, and 5% of the next $1,000,000 qualifying investment in plant, equipment, or other depreciable property.

Non refundable tax credits are available to eligible businesses in designated enterprise zones from the start of the tax year in which the designation is made. Unused credits may be carried over for three years. Businesses closing operations in one rural area to locate in another rural area may not claim tax credits under this program. Construction jobs are not eligible for tax credits. Retail businesses and public utilities are not eligible to claim tax credits. To apply for the Enterprise Zone Tax Credits use our online application:

• Utah Enterprise Zone Map
• Capital Investment Credit Application
• Employee Credit Application

The purpose of the Enterprise Zone/Non-Profit (EZNP) program is to encourage nonprofit organizations (501C-3 only) to develop projects that have a positive community and economic impact in rural Enterprise Zone Areas.

What is the GOED Rural Development Enterprise Zone Non-Profit Program? 

Purpose: The purpose of the Enterprise Zone/Non-Profit (EZNP) program is to encourage nonprofit organizations (501C-3 only) to develop projects that have a positive community and economic impact in rural Enterprise Zone Areas. 

What is the Benefit? If selected and the project approved, the non-profit may provide a Utah state tax credit to their donors who make contributions to the nonprofit corporation for the approved project. The selected non-profits will be provided with a tax credit allocation – the maximum dollar amount that is available to their donors for tax credits. 

The Details:

• Only non-profits with federal 501C-3 status that are located within designated Enterprise Zones are eligible and one of the organization’s primary purposes must include community & economic development.
• GOED will announce the timing and process of the EZNP program and then reviews the applications, if all eligibility requirements are met, then the application will be forwarded to the Governor’s Rural Partnership Board (GRPB) for consideration
• Each year the GRPB Board may allocate up to $75,000 in any calendar year of tax credits for eligible Non-Profit Projects, with no more than 50% of that amount going to one project.
• If a project is approved by GRPB and given an allocation of tax credits, then GOED will provide the non-profit corporation with an agreement describing the approved amount of non-profit contribution tax credits available to donors who make contributions to the nonprofit corporation for an approved Project, along with the nonprofit corporation’s requirements for reporting to the office. These reporting requirements include annual status updates and the final report when the project is completed. Upon complete execution of the agreement, then the non-profit may begin solicitation of donations for which a tax credit could be claimed.
• The total amount of tax credits made available to the non-profit must be used in the 2 calendar years for which it was awarded. The non-profit will provide a list of donors to the approved project to GOED and the amounts of their donation.
• The non-profit must comply with GOED reporting requirements to include annual status updates and the final report when the project is completed.
• Acceptable projects could include: o a community event or project that will foster community and economic development and/or; o the building or renovating of, or the acquisition of property for
  • a museum
  • a tourist or visitor center
  • a theater
  • a building where the use of the building will foster community and economic development
• Non eligible projects: o the building or renovating of a state-owned building; o providing or funding scholarships; or o the building or renovating of a housing project.
• Non-profit donors must complete an application for the tax credit and will need to be certified by GOED. If approved, the donor will be provided with a tax credit certificate that will need to be filed with the donor’s tax return. The tax credit certificate will not exceed 50% of the value of the donation to the non-profit approved project.

Enterprise Zone Non-Profit Credit Application 

The San Juan County CRA was created with the purpose to increase economic development and activity within our communities. A CRA is a separate legal entity, comprised of our County Commissioners and is utilized as an Economic Development tool primarily used to provide tax increment investment. A CRA can be used to: reimburse horizontal infrastructure, reimburse development costs, buy or buydown land, provide direct development incentives, or for public Infrastructure.

• If you are interested in being considered for a CRA area please contact [email protected] or 435-587-3235.
• San Juan County CRA Policy
• CRA Overview

What are Opportunity Zones?

In December of 2017, new tax legislation was enacted that included the “Investing in Opportunity Act.” This act created an investment tool called “Opportunity Zones,” with the goal of incentivizing private investment to revitalize economically distressed communities across the U.S. Over 8,700 census tracts throughout the nation were designated as Opportunity Zones, nominated by the governor of each state. 

The Opportunity Zone program provides tax benefits for investors to re-invest their capital gains into dedicated Opportunity Funds, which are then used to make investments in qualifying business or real estate projects in designated Opportunity Zones. 

Where is San Juan County's Opportunity Zone?

San Juan County has one Opportunity Zone located in the southern part of San Juan County, which also overlaps with the Navajo Nation, in the heart of the Four Corners region. The zone is boarded by the Glen Canyon National Recreation Area (Lake Powell), 191, and the AZ state boarder.

What are the benefits of Opportunity Zone investment?

Investors qualify for three different tax benefits if they invest their capital gains into qualifying zones.

• Temporary Tax Deferral - A taxpayer can defer tax payments on their capital gains until 2026 if they put those gains into an opportunity fund to be invested in a qualified opportunity zone business or real estate.
• Step-Up in Basis – Step-Up in Basis is a tax liability reduction on capital gains. If the investment is held for at least five years, tax liability is reduced by 10 percent. If the investment is held for an additional two years, for a total of seven years, the tax liability is reduced by 15 percent.
• Tax Exemption - All capital gains made from the opportunity zone investment are free from federal taxes, as long as the investment made through an opportunity fund is held for at least 10 years.

More details regarding these incentives are provided here and/or here. A timeline for capturing these benefits is provided below. To maximize the step-up in basis, capital gains must be invested by the end of 2019.

How do I invest in San Juan County's Opportunity Zone?

• Download the investment prospectus for San Juan County

The Utah Rural Jobs Act enables an eligible small business located in a rural county to expand and create high wage jobs by providing flexible and affordable capital to small businesses in these areas. The program has three types of participants: 1) Investors who provide capital investments to a Rural Investment Company, 2) Rural Investment Companies who raise the funds from investors to be invested in eligible small businesses; and 3) Eligible small businesses who may receive up to $5,000,000 in capital for business development and expansion needs. The program authorizes $42,000,000 of investment authority to Rural Investment Companies.

• More information: PDF
• For information on investment companies please contact 435-587-3235

What is the Rural Economic Development Incentive (REDI) Grant?

The Rural Economic Development Incentive (REDI) program is designed for businesses creating new high paying jobs in counties of the fourth, fifth or sixth class (populations of less than 31,000). These jobs can be remote, in a satellite hub/office, or physically located in the same county as the business.

Who is eligible?

Businesses not primarily engaged in construction, retail, staffing or public utilities industries are eligible to apply. A business considering the REDI grant must apply for and receive approval through GOED in advance of creating a new position. The company will enter a written agreement with GOED and must demonstrate that the new jobs:

• Are created in addition to the highest baseline count of employment positions that existed within a business entity during the previous taxable year
• Pay at least 125 percent of the average county wage
• Are filled by an employee who works at least 30 hours per week
• Will exist for at least 12 consecutive months
• Are not filled by an immediate family member of an officer or owner of the company

Incentives:

A business entity may qualify for up to $25,000 in rural employment expansion grants each fiscal year.

Potential Allocation Award Amounts:

• $4,000 for each new full-time employee position in a county where the average county wage is equal to or greater than the state average wage
• $5,000 for each new full-time employee position in a county where the average county wage is between 85% and 99% of the state average wage
• $6,000 for each new full-time employee position in a county where the average county wage is less than 85% of the state average wage The REDI Grant Levels Table provides county-specific information.

San Juan County REDI Grant Levels

Learn about the 2019 REDI grant by watching this video.