Across Utah, small businesses struggling to endure the economic hardships of COVID-19 have access to another financial lifeline to help keep their doors open and workforce employed. MoFi, a mission-based financial institution, is now working alongside banks and credit unions to provide forgivable Paycheck Protection Program (PPP) loans to Utah small businesses impacted by the pandemic. As a mission-driven Community Development Financial Institution (CDFI), MoFi is particularly interested in helping those businesses that are not able to obtain a PPP loan from a bank or credit union, including sole proprietors, independent contractors and self-employed individuals, as well as businesses owned by, located in or serving low-income communities. MoFi is the only CDFI providing PPP loans to businesses in Utah.
The second round of PPP, launched earlier this month by the U.S. Small Business Administration, included many changes to make the program easier to use and more accessible to a wider variety of business types. These additions include 501(c)(6) nonprofit organizations (including business leagues and chambers of commerce), news organizations (print newspapers, radio stations and television stations), seasonal employers and faith-based organizations.
PPP loan funds can be used to cover payroll costs, mortgage interest, rent, utilities and other operations expenses. The loans will be fully forgiven if funds are used to cover eligible expenses. MoFi has provided nearly 2,000 PPP loans to businesses in Idaho, Montana, Oregon, Washington and Wyoming in the last nine months, with an average loan size of $26,000.
“From childcare facilities and restaurants to Main Street businesses and independent contractors, we’ve heard from business owners across the Rocky Mountain West that PPP loans have been vital to helping them stay afloat right now. But many people have struggled to get one or don’t think they qualify,” said MoFi President Dave Glaser. “We’re working to spread the word and hopefully ensure that every Utah business that needs a PPP loan is able to get one.”
MoFi is accepting applications from first-time applicants as well as those who received a PPP loan in 2020, and encourages interested Utah business owners to get in touch as soon as possible. Applications are being processed on a first-come, first-served basis.
To apply for a forgivable loan, visit https://www.mofi.org/paycheck-protection-program-loan/.