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House tweaks capital access program to expand premium range, passes 64–1
Summary
Lawmakers amended parameters of the Capital Access Program in HB17 to allow premium flexibility (minimum 0.5% to maximum 6%), allow lender-held reserve accounts, and let UTFC withdraw interest from the state account; after floor questions on reporting and risk the House passed HB17 64–1.
Representative David M. Jones presented House Bill 17 as largely technical changes intended to make Utah’s Capital Access Program more usable for small and rural businesses seeking start-up capital.
Jones said the bill changes three main elements: it broadens allowable premium parameters so lenders and borrowers may contribute premiums as low as 0.5% and as high as 6% (with a cap of 6% on total premium paid by a borrower), clarifies that the lender’s contributed portion may be held in the lender’s own institution while the state portion remains with the state, and permits the Utah Finance Authority (UTFC) to withdraw interest from the state portion of the account.
Members questioned whether a reduced minimum premium might make loans marginal and whether monthly reporting would be required if banks hold contributed funds on their own books. The sponsor clarified the premium is a one-time matched premium and not an annual payback; he said reporting will continue and the legislation adds a monthly reporting requirement for banks to verify amounts held in lender accounts.
After questions and summations, the floor vote resulted in House bill 17 receiving 64 yes votes and 1 no vote. The bill passed and was forwarded to the Senate.
