One St. George-based company is seeking to provide low-interest loans to businesses in rural southern Utah to aid economic development there. Professional Funding is using the U.S. Treasury Department's New Markets Tax Credit program to provide loans to areas considered blighted.
Southern Utah’s population growth provides great opportunities to create jobs, said Rick Conner of Professional Funding.
“The community continues to grow pretty rapidly. It’s interesting how many times people will bring their job with them," he said. "They bring their business with them or they come here to start a business. So, because of that, it’s a very good fit.”
According to Conner, the businesses in low-income areas seeking a loan under the program are evaluated for their potential benefit to their community.
“The requirements are usually a little more flexible. You’ve got situations where a company can borrow money without necessarily having the full collateral of the loan," he said. "This is a type of a program where they’ll look very closely at other things: advantages to the community, jobs that would be created.”
The loans are designed to attract business to lower-income areas. According to the Treasury Department, investors in the program can receive a federal income tax credit by making investments in Community Development Entities. Since the program’s inception in 2000, over 800 awards have been made, totaling $40 billion in tax credits.
Those interested in more information on areas that qualify for the New Markets program can go follow this link.
