The Utah Technology Finance Corp. has entered into an agreement with Tooele County to create a revolving loan fund designed to attract new technology companies to the county.
Commissioner Ed St. Clair said several companies are considering Tooele County as a manufacturing site and the revolving loan fund will help them settle in the county, which is important because of the 700 to 1,000 jobs being lost from Tooele Army Depot.At the Wednesday Tooele County Commission meeting, county and UTFC officials signed a contract to activate the loan fund. UTFC has secured $500,000 from the Department of Housing and Urban Development that will be matched by $200,000 in UTFC money and $100,000 from the county.
Soon, UTFC will expand the program to Davis, Salt Lake and Weber counties and the Six County, Southeastern and Bear River associations of government. The Utah Revolving Loan Fund has been operating in Orem, Provo and the Bear River Association of Government since 1990, and nearly $1.5 million has been loaned.
Don Welty, UTFC executive director, said the fund operates similar to other statewide revolving loan funds except that it is oriented toward technology-based small companies.
It provides a maximum loan of $100,000 with a 2-for-1 private or public match expected. Loans are jointly funded between UTFC and a local government partner to provide leveraging of funds to both state and local government.
Loans can be used for working capital and for the purchase of machinery, equipment and inventory. Maximum effort will be made to make jobs available to low to moderate income people.