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Redevelopment agency proposes $200,000 grant to Utah Microloan Fund to expand small-business loans
Summary
Staff proposed a $200,000 RDA grant to the Utah Microloan Fund that would be matched to create a $400,000 revolving loan pool for West Valley City businesses; loans would be originated and serviced by UMLF and typical sizes were described as $25,000–$40,000.
Jonathan Springmeier, of the city’s redevelopment and economic development department, asked the council to consider a $200,000 grant from the redevelopment agency to the Utah Microloan Fund (UMLF). Springmeier said UMLF would match the city grant with independent funding to create a $400,000 revolving loan pool restricted to West Valley City businesses.
Springmeier said the loans are not grants and that UMLF will originate and service loans using standard underwriting procedures. “Most of these loans range in the $25 to $40,000 range,” he said, and the one eligibility restriction the city would place is that borrowers must be West Valley City businesses.
Council members asked about interest rates and caps; Springmeier said rates will vary and generally reflect market pricing plus a risk premium, and he did not specify a program cap beyond the typical loan sizes. Springmeier also said a board member with a potential conflict (Jim) would sit out of UMLF board deliberations on matters that affect the city to avoid conflicts.
Springmeier framed the proposal as a tool to reach businesses that tax-increment financing cannot easily serve, such as small restaurants occupying existing spaces. If approved, the grant would seed a revolving fund that staff expect to recycle as loans are repaid.
Next steps: the proposal was presented for council consideration; no final vote or appropriation was recorded in the study session transcript.
