Small Business Loans
Resources & FAQs
FAQs
What is the purpose of the MAG Small Business Loan Program (SBLP)?
The purpose of the MAG SBLP is to create permanent, long-term jobs within Utah, Wasatch and Summit Counties by providing “gap” and start-up financing to businesses that do not qualify for traditional business loans or who have a gap between need and commercial financing available. Funds are repaid into the program and recycled to other businesses, thus facilitating an ongoing job creation program.
Does my business qualify for a SBLP loan?
To qualify for a MAG SBLP loan, businesses must meet the following criteria:
● The business must have 100 or fewer employees.
● The business must be located in Utah, Wasatch, or Summit County.
● Your request must fall within $10,000-$250,000.
When do you accept applications?
Applications are accepted year-round. Prior to submitting an application, applicants must meet with loan staff. Applications must be submitted by the third Wednesday of each month to be considered for the following month.
How do I apply?
You can find our application instructions here.
Who decides if my application is approved or denied?
The MAG SBLP Committee reviews all applications. This committee is composed of business leaders in the Mountainland region. Applicants are interviewed by the committee to present their application and answer any questions that the committee may have.
If I am awarded a SBLP loan, what are eligible uses of the funds?
SBLP funds can be used to purchase machinery, equipment, or other fixed assets used in business operations. The loan funds may also pay for working capital including inventory, accounts receivable, operating expenses, and labor.
What are the terms and conditions of SBLP loans?
Interest rates will not exceed 5 points above the Wall Street Journal Prime Rate (fixed over the loan term). Loan terms of 6 months to 5 years are available and loans range from $10,000-$250,000.
What are the fees associated with SBLP loans?
SBLP staff will run a credit check on all applicants. This fee will be covered by the applicant and is $27.00 per borrower. The credit check fee may be paid by check (payable to Mountainland Association of Governments) or online here.
Origination and recording fees are 2% of the loan amount and are financed into the loan. These fees are used to defray administrative and monitoring expenses.
What are the requirements of my business once a loan has been approved?
Borrowers may be required to create and/or retain one job for every $35,000 (approx.) of SBLP money. 51% of jobs created should be filled by or made available to low- or moderate-income individuals, and the loan holder may be required to submit annual job creation reports with MAG. Loan holders must submit annual financial reports to MAG. Other requirements may be set by the SBLP committee.
How do I make my loan payments?
MAG will withdraw the loan payment amount from your bank account on the 7th of each month.
Who do I contact if I need help?
For technical assistance with the Neighborly application, contact support@neighborlysoftware.com. For questions about loan payments or for your application status, email businessloans@mountainland.org.
For more information and to schedule a pre-application interview, contact:
Karol Patterson
Loan Program Specialist
801.229.3665
businessloans@mountainland.org
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