City’s Business Loan Program Lends Record Amount in 2011

January 9, 2012
Contact: Dan Velazquez
801-535-7941
City’s Business Loan Program Lends Record Amount in 2011
Revolving Loan Fund aims to enhance neighborhood vitality, grow local businesses
SALT LAKE CITY – Salt Lake City’s Revolving Loan Fund just completed a blockbuster year, granting over $1.6 million in funding to local businesses in 2011.  It was a record year for the fund, which began in the 90s and has lent over $14 million to Salt Lake City businesses since its inception.
The Fund, which makes low-interest loans available to businesses within City boundaries, is managed to achieve three primary objectives: stimulate business development and expansion, encourage private investment and economic development and enhance neighborhood vitality.
“The number of applicants to this loan program has grown over the years and we expect this to continue,”said Economic Development Director Bob Farrington. “To ensure continued capacity, the City has begun to explore private-public partnerships with banks.”
Businesses applied loan proceeds towards a variety of uses including company expansions, job creation, equipment, building renovations and working capital.
“The program has played a critical role in providing local businesses with working capital, which in turn has helped support new job creation and the City’s continued economic growth,” said Revolving Loan Fund Manager Dan Velazquez.
Recipients of the 2011 Revolving Loan Fund include The King’s English Bookshop, Bluehouse Skis, Liberty Park Concessions, Discrete Headwear, Dolcetti Gelato, Drake Powderworks, Red Iguana, Eiffel Tower Catering and Babinski’s Baby.
“This program does exactly what it was intended to do,” said Bill Coker co-owner of the Red Iguana Restaurants. “It fills a very big gap between credit cards and venture capital that small businesses desperately need. It’s another one of the great things that our City is doing to keep our civic life vital and successful.”
The City’s Revolving Loan Fund was established with funds from a federal grant program separate from the City’s general fund. Additionally, the Revolving Loan Fund partners with state organizations to promote economic development in Salt Lake City. These partner organizations include the Utah Microenterprise Loan Fund, the Economic Development Corporation of Utah and the Governor’s Office of Economic Development. Salt Lake City is now accepting applications for business loans to be considered in 2012.
For more information regarding the Revolving Loan Fund visit www.slcgov.com/ED/rlf.htm.
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