The State Small Business Credit Initiative Program Fund is an enterprise fund to provide loan and loan guarantees for the federal government's Small Business Credit Initiative. The program guarantees up to 80% of loans for small business owners. Because the state purchases portions of loans, the program receives fee and interest income. The program is self-sustaining and uses its income to cover potential losses.
During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $1,350,300 from all sources for State Small Business Credit Initiative Program Fund. This is a 0 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.
Based on current law (UCA 35A-8-1201) the State Small Business Credit Initiative Program Fund functions as an enterprise fund. UCA 35A-8-1203 directs an annual report by November 1 to the Economic Development and Workforce Services Interim Committee on the effectiveness of the loan and loan guarantee program.
This Fund receives revenue automatically as per UCA 35A-8-1201 indicates that revenues may come from "grants, pay backs, bonuses, entitlements, and other money received from the federal government to implement the State Small Business Credit Initiative; and transfers, grants, gifts, bequests, and other money made available from any source to implement this part."
COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.