A grant program to boost employment in rural Utah has become very popular.
A total of 46 companies were approved for Rural Fast Track (RFT) grants during the July-through-June fiscal year, with the grants tied to the creation of 93 high-paying, full-time jobs in 15 counties. That compares with fiscal year 2016 totals of 31 grants across 12 counties, tied to 122 jobs.
About $2 million in state funding — nearly all that the grant program had — was used during the most recent fiscal year, while the private spending on approved projects totaled over $17.5 million, Linda Gillmor, associate managing director for urban and rural business services and director of the Office of Rural Development in the Governor’s Office of Economic Development (GOED), told the GOED board at its July meeting. For comparison, the 2016 fiscal year saw $1.3 million in grant funding and $4.5 million in private investment.
“This is actually wonderful to be able to present this year because we have grown this program with encouragement from the board for marketing and different things. … This is the highest we have used our program — better than any of the last [few] years,” Gillmor said. “This is really fun to see.”
Cache County had the most projects, with nine, while Juab and Carbon counties followed with six each. “It’s not surprising that the ones who are using the program most are the ones next to the Wasatch Front, which is the growth that we expect,” Gillmor said, adding that many other counties have gotten involved.
Of the 46 approvals, 12 were for companies in manufacturing, seven are in construction and four are in engineering. Eighteen industry categories received grants. “We’re very proud of where this money is going and building up these communities,” she said.
In the fiscal fourth quarter, 15 companies were approved for grants. They are in 10 counties and the grants are expected to result in 28 full-time-equivalent jobs. Five went to manufacturing companies, and companies from seven industries were approved for funding. Total grant funding was $748,000 while the private investment totaled $6.7 million.
“This is a nice ratio. For every dollar that the state spends, we’re getting $8.96 in private funding,” Gillmor said.
In a written testimonial presented to the GOED board, Sandy Emile, president and chief executive officer of the Cache Chamber of Commerce, said that 11 businesses in Cache Valley received grants in 2016, totaling more than $500,000. “Without this support,” she said of the grants, “their expansions and the hiring of a projected 34 new jobs would not have been possible.”
The Rural Fast Track program is a post-performance grant available to small companies in rural Utah. It is designed to provide an efficient way for existing small companies to receive incentives for creating high-paying jobs in the rural areas of the state and to further promote business and economic development. Recipient businesses must have been in business at least two years and have at least two full-time employees. The top grant amount is $50,000.
The RFT program is part of the state’s Industrial Assistance Fund (IAF) and can get up to 20 percent of unencumbered IAF funds. That means that if the IAF total shrinks, so does the RFT total.
“This is a concern that we have moving forward, especially now that everybody is finding out about this program,” Gillmor said. “We’d love to really push it and market it, so funding is an issue.”
At the GOED board’s July meeting, two RFTs — not counted in the 2016-17 figures — were endorsed. Dax Welding of Fountain Green was endorsed for a $50,000 grant to enable it to expand its current manufacturing space and capability and add two new full-time jobs in a $200,00 project. Kerksiek Wood Design of Beaver was endorsed for a $50,000 grant for a $115,000 project to help add equipment and capacity to meet increased product demand and add two jobs.
Meanwhile, another initiative to boost employment in rural Utah will be marketed locally during the next few weeks. In his State of the State address, Gov. Gary Herbert announced a plan to add 25,000 jobs in rural Utah over the next four years. A “launch tour” presented by Lt. Gov. Spencer Cox and World Trade Center Utah already has taken place in Box Elder, Cache, Rich and Summit counties to show businesses how they can participate in the initiative. Upcoming tour stops — with exact locations to be determined — will take place:
• Aug. 2: 11 a.m.-1 p.m., in Beaver County and 4-6 p.m. in Washington County.
• Aug. 9: 11 a.m.-1 p.m. in Emery County and 4-6 p.m. in Carbon County.
• Aug. 10: 11 a.m.-1 p.m. in Grand County and 4-6 p.m. in San Juan County.
• Aug. 22: 4-6 p.m. in Wasatch County.
• Aug. 23: noon-2 p.m. in Daggett County and 4-6 p.m. in Uintah County.
• Sept. 5: 11 a.m.-1 p.m. in Juab County and 4-6 p.m. in Millard County.
• Sept. 6: 4-6 p.m. in Tooele County.
• Sept. 25: 11 a.m.-1 p.m. in Kane County and 4-6 p.m. in Garfield County.
• Sept. 26: 11 a.m.-1 p.m. in Piute County and 4-6 p.m. in Wayne County.
Details are at www.25kjobs.com.