(The Center Square) - Utah is receiving $69 million in American Rescue Plan Act funds for the State Small Business Credit Initiative.
Three programs will benefit from the funds, according to a news release from the U.S. Treasury Department. Utah is using $27.6 million for a loan participation program that lowers interest rates and expands credit for small business owners. An additional $31 million is allocated for a program that guarantees up to 80% of small business loans to lending partners. The remainder of the funds will go to a capital access program, according to the news release.
Utah has 313,590 small businesses, which are classified as ones with less than 500 employees, according to the U.S. Small Business Administration Office of Advocacy. More than 99 percent of all Utah businesses are small businesses, according to the SBA.
The 12-year-old SSBCI provides capital for entrepreneurs and small businesses, according to the U.S. Treasury Department. Utah is one of 11 states splitting up to $1 billion in ARPA funds. Another 31 states have been awarded a portion of $4.8 billion in ARPA funds, the department said in its news release.
"This is an historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities," said Secretary of the Treasury Janet L. Yellen in a statement.