Utah State Small-Business Grants

Utah welcomes small business and provides a number of opportunities to help businesses succeed. The state government has a series of grants designed to start small businesses, cover employee costs, train staff and help expansion. The Governor's Office of Economic Development includes specialized teams of economic development professions trained to aid small businesses and find the grant best suited to a company's growing needs.

Grants, Incentives and Tax Credits

• There are three ways government can help small businesses and not require repayment of principal or interest: grants, incentives and tax credits. Each is a specialized tool for small businesses. Grants offer funds to accomplish specific public economic growth goals. Grants are cash payments or in-kind services for the business, and no repayment is required.

  Incentives are government programs reimbursing small business as a reward for meeting specific criteria. These can be cash or in-kind services. The difference is the business usually has to perform to and pay for the eligible equipment or additional employees before the incentive is paid out. If the incentive is given in advance of meeting criteria, the business can be required to pay back the incentive if it fails to meet the agreed-upon goals.

  Tax credits are direct reductions from the taxes owed when businesses meet established criteria. A tax credit differs from a tax deduction. Deductions reduce the amount of money on which taxes are owed, resulting in lower tax bills. Tax credits reduce the amount of tax that must be paid and can even generate tax refunds. To qualify for a tax credit, a business must make the expenditures in advance of receiving the credit or refund.

History

• The Office of Community and Economic Development, which helps promote tourism, film production and local government planning, was chartered in 1979. A softened economy in the late 1980s demonstrated the importance of small business to the overall Utah economy. The Governor's Office of Economic Development was given funds and legislative authorization to create grants and incentives for small business. This role expanded significantly over the first decade of the 21st century.

How the Office Works

• Appointed at the governor's pleasure, the director and deputy director serve an appointed board of directors composed of Utah business-sector leaders. The directors set policy and oversee the direction of the agency. Many of the grants and incentives and all of the loans must be approved by the board. The office is divided into three departments: Business Incentives and Growth, Business Creation, and Tourism and Film. Business Incentives and Growth oversees all the programs administering grants, incentives and tax credits.

Utah Small-Business Grants

• The Centers of Excellence dollar-for-dollar matching grants are awarded to small businesses that license technology from one of Utah's research universities. The Centers of Excellence grant offsets costs of new manufacturing equipment, new personnel or business expansion.

  The Rural Fast Track grant encourages small-business growth in rural communities. Utah awards grants up to $50,000, with a maximum cash payout of $1,500 per employee to help pay wages and benefits for new employees.

  The Renewable Energy Development grant encourages alternative energy sources. and refunds five to ten years' worth of all government taxes, including federal, state and local business licenses.

Local Government Grants

• Many Utah cities and counties have economic development departments that leverage state grants with other sources for small businesses. Although the money comes from the state, the local government establishes requirements and awards the grants. In most cases, the grants are used for pay for infrastructure improvements necessary to support the business: road improvements, sewer and water line construction, telecommunications and power connections. Some local governments permit grant funds to be used to acquire land for the business' building. The Office of Economic Development has a list of local governments with small-business grants that it incorporates into a grant package when working with a business.