"Micro" may be part of its name, but the Utah Microenterprise Loan Fund has had some big successes in its eight years of existence.
The nonprofit, multibank community development financial institution has provided 236 loans, totaling more than $2 million. Still active are 123 loans and 205 of the receiving companies remain in business. Sixty-three loans have been paid off.
Forty-eight percent of applicants get loans, with an average size of $8,534.
Fifty-one percent of the winning applicants are involved in startup companies, 47 percent of winners have service companies and exactly half of the recipients are women.
The fund provides three types of loans. The traditional microloan, up to $10,000, can be awarded to people in Box Elder, Davis, Morgan, Salt Lake, Summit, Tooele, Utah and Weber counties.
The child-care provider loan, for child-care businesses in Salt Lake County, can allow for up to $10,000 over a maximum of five years. In certain cases requiring renovations, loans may be for up to $25,000 with a seven-year term.
The fund's "Under 3" step-loans are for existing businesses in Salt Lake County. Recipients can get loans between $500 and $3,000, structured as a series of graduated shorter-term loans.
The loan process usually involves submitting an application and personal financial statements, preparing a business plan, and making a presentation to the fund's Credit Committee.