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By Raj Dhaliwal

What is the Salt Lake City Emergency Loan Program?

Mayor Erin Mendenhall and the Salt Lake City Council recently announced the Salt Lake City Emergency Loan Program (“Program”) to help support small businesses during the COVID-19 Crisis (“Crisis”). The Program provides a total of $1,000,000 in loans to eligible small businesses, which will be disbursed over two separate $500,000 rounds. Though the deadline for the first round of funding under the Program has already passed, the deadline for the second and final round is April 2, 2020 at 11:59 P.M.

Who is Eligible to Receive Loans Under the Program?

In general, businesses (including nonprofits) located within Salt Lake City (see map) with 50 employees or fewer are eligible to receive loans under the Program. This includes for-profit businesses, revenue producing ventures of non-profit organizations and art-based businesses and organizations.

Additionally, Salt Lake City has provided the following guidance for applicants:

  • Business owners are not required to live in Salt Lake City or to be U.S. citizens, but must possess an Individual Taxpayer Identification Number.
  • Businesses that already have a loan with Salt Lake City can apply for new loan under the Program if the business (1) otherwise meets the requirements for eligibility under the Program, (2) is current on all of its payments under the existing loan with the City, and (3) the total amount of the loans (i.e. combining the existing loan with a loan under the Program) does not exceed the maximum loan amount under the Program.
  • Multiple loans in excess of the maximum loan amount for the Program will not be allowed for affiliated entities.

How Much are the Loans and What Can They Be Used For?

The maximum loan amount under the Program is $20,000, and loan proceeds can only be used for working capital (i.e., payroll, rent, etc.), marketing and inventory purposes.

What are the Terms and Conditions For the Loans?

Loans provided pursuant to the Program will have the following terms:

  • An interest rate of 0%;
  • A loan term of 5 years;
  • The first payment will be deferred until approximately 90 days following the expiration of the local emergency connected to the COVID-19 outbreak; and
  • All business owners owning at least 19% of the business’ equity will be required to provide a personal guarantee.

What Criteria Will Salt Lake City Consider When Evaluating Applications?

The City will use the following criteria to assess applications for the Program:

  • The extent of the financial impact to the business from the Crisis;
  • The business’ narrative impact statement in its application;
  • How the business will use the loan; and
  • The business’ well-being before the Crisis.

How Do I Apply? What Other Documents Are Required?

Applications are in English, Spanish, Vietnamese and Swahili, and must be submitted via email to moc.vogcls@PLE by 11:59 P.M. on Thursday, April 2nd.

In addition to the loan application, businesses must submit the following documents (as applicable):

  • Profit & Loss Statements from the (1) previous year and (2) most recent quarter or month;
  • Balance Sheets from the (1) previous year (2019) and (2) most recent quarter or month;
  • Tax Returns from the previous year (2018 or 2019), OR a 990 Tax Form (for non-profit organizations);
  • Copy of the business’ Salt Lake City Business License;
  • Copy of a driver’s license or other government issued identification;
  • Copy of completed and signed W9; and
  • Personal Tax Returns (from the previous year) for each guarantor owning at least 19% of the business.

When Will I Learn Whether or Not My Application Has Been Accepted?

The City will notify applicants within 3 days of the application deadline (11:59 P.M. on April 2, 2020).

If My Application is Accepted, Will it Disqualify My Business from Receiving Funds from the Small Business Administration?

No, applying for a loan under the Program will NOT disqualify your business under the Small Business Administration’s Paycheck Protection Program.

To learn more about the Paycheck Protection Program and whether your business qualifies click here.

Other Questions?

Ray Quinney & Nebeker has a team of attorneys ready to assist you throughout loan application process. As mentioned before, the deadline to apply for a loan under the new Salt Lake City Emergency Loan Program is fast approaching. If you have any questions about the contents of this article, please contact Raj Dhaliwal at 801-323-3679 or moc.nqr@lawilahDR, or visit us at