Why we focus on small business lending in Salt Lake City, Utah

Why do we focus on small business lending in Salt Lake City, Utah? You might consider that a ridiculous question. Of course, we focus on small business lending in Salt Lake City, Utah, because we live and do business here, but there is another reason for it. We focus on small business lending here in our neighborhood because small businesses are relocating to Utah in droves. And they are doing so because Utah is one of the pro-small business states in the country. Entrepreneurs want to come here and start businesses, and we want to help them.

It’s also important to note that we have another location recently opened in Lehi, Utah. While Salt Lake City has been our primary home and where we do most of our business, Lehi and other areas in Utah are just as important to us. And we want to do our best to support small businesses in Utah, whether it is through helping them get established or grow a business they already have here. This is especially important in light of the fact that U.S. disaster loan assistance has dried up completely. For businesses that need help, where do they go?

First Utah Bank Offers Small Business Lending Options for Utah-based Small Businesses

No matter your business type, we offer small business loans that could help you get through tough times. Just as the SBA offered COVID relief to small businesses during the pandemic, we understand there are problems on the horizon. Inflation has hit an a 40-year high, the supply chain continues to run into strong headwinds and many fear we may enter a period of stagflation. When you put these things together, you end up with a situation where small businesses could wind up in real trouble. And that’s where we hope to come in.

Here is the beauty of applying for a small business loan through First Utah Bank: we custom-tailor it to your needs. We don’t follow a cookie-cutter approach that tries to shoe-horn you into the same type of loan we just gave another business in a similar niche. We try to get creative and find ways to get you the lowest rates at the most favorable terms. As Utah’s premier community bank, we take a local look at every solution.

What sets us apart is that we have a deep wealth of local knowledge. We understand the marketplace quite well, and we can use that knowledge to our advantage when we set the terms for your small business loan. One thing we do understand is that rates are high right now, which is why we make every effort to ensure the terms you wind up signing under are as favorable as possible. We are committed to supporting the communities we operate in, and that includes loan terms favorable to the small businesses that come to us for assistance.

Why Do Businesses Need Small Business Loans in the First Place?

A business purpose loan is usually taken out to meet specific business expenses or to expand the business. Real estate investors, for example, borrow against occupied properties to obtain a loan for farm-zoned land. Still, the primary reason businesses take loans is for the development of their operation and further purchases. The fact that you want to expand your business is a good indication to a bank that you are on sound financial footing and are a good candidate for one of their small business loans.

One thing to consider is that if your business is undergoing losses, the chances of getting approved for a small business loan are quite low. There is no possibility of expanding your business if your business is losing money. Lenders will need to see that you can show good cash flow and profits. Otherwise, small business loans act like mortgages and generally have terms that extend 25 to 30 years out.

There are a lot of small businesses moving to Utah and building new structures or buying new equipment, for instance. There are advantages to taking loans out to buy new equipment. One example is by writing off a certain amount for the purchase in the first year, you can own the equipment and deduct the remaining amount during the rest of the payoff period. Once you’ve gotten full value out of the life of the equipment, you can sell it for salvage and pay off the rest of the loan.

There are a lot of other reasons for small businesses to take out loans, including:

• The need for working capital
• For building credit
• New personnel recruitment
• Funding expansion

It is up to you to decide whether the loan is worth taking. If the loan amount and terms are likely to bring you profits, then go for it. There is always a certain level of risk involved. Conduct your due diligence and give First Utah Bank a call. Our Small Business Lending division is ready to work with you!