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Utah House approves Capital Access Fund aimed at expanding small‑business lending
Summary
The Utah House passed HB 51 to create a Utah Capital Access Fund, a loan‑loss reserve program administered by the State Treasurer to encourage banks to lend to small businesses; sponsor estimated a $375,000 state match could leverage roughly $7 million in private lending. Vote: 62–4.
Representative David M. Jones urged colleagues to approve HB 51, the “Utah Capital Access Fund,” saying the measure is modeled on a successful Michigan program and is aimed at narrowing a documented capital gap for Utah small businesses.
“If this bill passes, it would require an agreement to be formed between the state treasurer's office and certain banks participating in the program,” Jones said, explaining the proposal would create bank‑held reserve accounts combining private premiums and a state match to offset losses on a special portfolio of loans. Jones said a suggested initial appropriation of $375,000 could, by leveraging private capital, “generate an additional $7,000,000 of small business lending in our state.”
The program establishes guidelines for how loans are enrolled and how premiums are matched; Jones said the state match would not be a loan guarantee but a portfolio reserve to be tapped only for actual losses. Early‑stage loans would receive higher state matches (150% normally; 200% for rural enterprise zones) to encourage bank participation in underserved areas. He also emphasized that banks retain underwriting discretion and must make prudent lending decisions.
Supporters, including representatives who said they had banking or startup experience, framed the bill as a market‑driven way to extend credit to firms that otherwise would be turned away. Representative Geelander described personal experience needing out‑of‑state capital and urged support so financing would remain in Utah. Members asked about administrative costs; sponsors said the State Treasurer’s Office would primarily track accounts and that half the interest earned on the fund would be available to offset administrative costs.
The House adopted rules‑committee amendments and approved the bill as amended. House bill 51 passed the chamber by a roll call of 62 affirmative to 4 negative votes and will be transmitted to the Senate for further consideration.
What’s next: The sponsor said the bill contains no direct appropriation in the floor version and asked the Appropriations Committee to consider funding the suggested $375,000; otherwise, he said they would pursue funding in the governor’s budget next year.
