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SALT LAKE CITY -- Next month, small business owners in Utah and across the country will get a financial shot in the arm, if they need it. The Small Business Administration (SBA) will launch a program to give struggling businesses an interest-free loan of up to $35,000.
These loans are part of the nation's overall economic stimulus package. The SBA was allotted $730 million to loan out, interest-free. Utah gets $255 million of that.
Stan Nakano, SBA's district director in Salt Lake City, said, "It's a five year loan, and they don't have to make their first payment for one year."
Nakano says the loans are designed for existing businesses which have struggled financially during the past several months.
"The whole idea is to help these small businesses make debt payments on existing loans that they already have," Nakano explained. "They won't be charged interest on it. Then they can hopefully use that cash flow and use it for expenses, paying employees, suppliers and that type of thing."
Nakano says it's unclear right now how many small businesses will apply for these loans. But he says it could be hundreds in Utah, requesting millions.
He says as far as stimulating the economy, helping small businesses is the way to go. They make up more than 95 percent of all businesses and they create more jobs. It's important that these companies rebound.
"Small businesses really add tremendously to our economy. We do believe they are the engine that drives the economy in our state," Nakano said.
Businesses can begin applying for the loans June 15. These loans are for established businesses only, which have been open for at least two years.
Find more information how to apply for those loans at the link on this page.
E-mail: kmccord@ksl.com
