REVOLVING LOAN FUND (CARES ACT)
The Uintah Basin Economic Development District Care Act Revolving Loan Fund (RLF) Program was established with funding from the United States Economic Development Administration (EDA). The goal of the Cares Act RLF Program is to assist with businesses affected by COVID-19
Businesses must be located within Daggett, Duchesne or Uintah Counties.
Business must be willing to create or retain at least one (1) full-time equivalent (FTE) job for each $25,000 of RLF monies requested (within two years) of receiving RLF funding.
UBEDD approval for requested financing must be obtained prior to project initiation.
Each loan application will be evaluated individually by the UBEDD and General Board of Directors using the following guidelines:
Leverage: At least 67% of the total project costs must be funded through private resources, such as loans from financial institutions and/or borrowers cash injection.
Loan Amount: The minimum loan amount is $5,000 and the maximum loan amount is $250,000 for each individual borrower.
Loan Terms: Loan terms are one to seven years for working capital, and up to twenty years for purchase of building and land.
Interest Rate: The interest rate shall be determined on a case-by-case basis. The interest rate is fixed for the loan term.
Collateral: Collateral requirements are to be determined on an individual basis. The security interest may be subordinated to private sector lenders participating in the project.
Personal guarantees are required.
USE OF LOAN FUNDS
Funds may be used to assist a business in:
Purchase, of land or existing building.
Rents, Payroll, Utilities due to COVID-19
To obtain an RLF application contact:
David Rust or Kendra Hackford
Uintah Basin Economic Development
330 East 100 South
Roosevelt, UT 84066
Telephone: (435) 722-4518
Within 30 working days of application submittal, UBEDD staff will inform the applicant of any additional information needed in the application. Completed applications will be forwarded to the UBEDD Board for approval.
Loan fees include a loan application fee ($75), a 1% loan origination fee, and payment of legal and closing costs. Micro-loans ($5,000-$25,000) have a sliding fee schedule.
RLF BUSINESS SPOTLIGHT
Covid-19 has affected many of the retail businesses in Vernal, UT.
This impact on businesses have increased the unemployment
numbers and have caused several retail commercial businesses to
close. There have been concerns from Vernal City and the Uintah
County Commissioners on how they can help revitalize Vernal City
as many businesses have closed their doors due to COVID-19. At
one point Uintah County was the highest unemployment County in
the State at 15.9%.
Brian and Katie Abrams step into the picture and buy a downtown
commercial building that had been the community bowling alley for 50 years. The bowling alley had closed 8 years ago and the building had been converted into an auto detail shop. With the acquisition of this building and reopening back as a bowling alley & fun center, Brian and Katie are able to revitalize employment opportunity that had been lost by Covid-19.
With the help of the RLF funds they received they will be able to employee between 13-18 employees. They have installed 14 new top of the line bowling lanes,along with all the equipment to run all those lanes. They have installed a new kitchen with tables and chairs, along with pool tables and an amazing arcade with a redemption fun center. Vernal has been without any type of indoor recreation, which has been a problem, especially during our long, cold winters. Now with the vision from the Abrams, Vernal and the surrounding communities have an avenue for wholesome fun for all ages. We wish Dinoland Bowl great success and find it a privilege to help them with providing an RLF loan to them.
REVOLVING LOAN FUND (original)
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