Kinsey Love
In Utah, more than anywhere else in the United States, business is booming. Some of the nation’s leading financial resources are taking notice as well. U.S. News & World Report recently ranked the Beehive State as having the best economy in the country. WalletHub echoed that sentiment by declaring Utah as the best place to start a business. According to the personal finance resource, those willing to open the doors to a new business can do so confidently anywhere in the state, from St. George to Logan.
For those with a big idea and a willingness to open their own small business, the research is clear: Utah is the best place to go for it. The national recognition speaks for itself.
But why? Let’s dig in.
Reasons for Starting a Small Business in Utah
Starting a small business can be immensely rewarding. Whether you have a big idea that could improve the world around you or a skill that others need and value, starting your own business and finding success can lead to greater financial freedom, the ability to be your boss and the possibility of passing on a family resource that can last for generations.
While risk is always associated with this huge career and life decision, those willing to take a chance in Utah can find confidence in the favorable location.
Not only is Utah’s strong economy a boon for increasing the quality of life for consumers, but business owners also benefit from perks such as low corporate income taxes, a reasonable cost of living, a talented workforce and easy access to small- business loans and resources.
Utah Boasts a Strong Economy
Many of the state’s leading figures frequently point to Utah’s economy as a source of pride. They do that for good reason. Research at Stanford University Graduate School of Business found that Utah’s rate of producing unicorns — or privately held startups that exceed a value of $1 billion — outperform the national average by a considerable margin. Statistically speaking, you have a better shot of creating a unicorn in Utah than in another state in America.
There are a lot of reasons for this. Experts and those who have been involved in "unicorn-making" point to Utah’s rich supply of talented, educated and creative workers. Many times, those who have received an education at one of Utah’s universities or colleges tend to stay in the state to build their professional career. They might do that because they’ve come to love the state’s reasonable cost of living and the ability to live, work and play in an area filled with plenty of life-enriching activities. Utah is a beautiful place and the allure of building an enriching life in the state is very appealing. Many creative people choose to make their lives here.
Beyond the people and the environment, additional factors include favorable conditions like low corporate income taxes and easy access to funding. Utah’s government and business leaders recognize the state’s entrepreneurial potential and strive to sustain this advantageous ecosystem.
Utah Attracts a Talented Workforce
It doesn’t matter what you’re into or what you want to learn to do better, in Utah you can find very talented people to learn and work alongside in virtually any industry. For example, Altabank’s list of business clients is as diverse as the state’s landscape. Anyone with a big idea, from opening a construction outfit such as RG Construction to a confectionary like Crumbl Cookies, can find success and growth in Utah.
The reason why so many people with big ideas and the determination to execute them choose to work in Utah is the balance found here between work and play. With access to bustling urban centers like Salt Lake City, a wealth of skiing and outdoor activities in Park City and breathtaking national parks in Southern Utah a short drive away, the state offers a rich tapestry of leisure activities. After a long workday, finding a way to enjoy yourself isn’t hard to do here. That’s big for people looking to make a splash with their business.
Utah Offers Easy Access to Small Business Loans and Resources
But of course, to hit the ground running, aspiring business owners often need a little assistance. Financing, whether for real estate acquisition, equipment purchase, or production needs, is a common necessity. In short, if you want to open up shop and have the best chance possible of succeeding, you’ll probably need a small-business loan.
Small-business loans can come in a couple of different options. The two lending options that get talked about the most are the SBA 504 loan and the SBA 7(a) loan. When considering financing options for your small business, it’s recommended to use an informed and educated loan officer to help guide you through the process.
SBA 7(a) Loans: If securing space for your business is a priority, the SBA 504 loan is worth considering. Tailored for commercial real estate financing of owner-occupied properties, it often covers equipment expenses. Fixed rates and the absence of external collateral are key features. The fees are lower compared to SBA 7(a) loans, but applicants must demonstrate a viable business contributing to job creation.
SBA 7(a) Loans: On the other hand, the SBA 7(a) loan suits those acquiring existing businesses or securing working capital for purposes beyond property and heavy equipment. While it can cover commercial real estate, the variable rate structure and higher fees make it less advisable for this purpose. However, the 7(a) option is suitable for various expenses and ground-up initiatives. Collateral is required, unlike the 504 loan, which uses the financed asset as collateral.
Utah’s Small Business Resources: Establishing a small business may seem daunting, but the potential rewards are irresistible for those with vision and determination. Utah offers numerous resources to support small- business owners. Local banks offer advice and education for small-business ventures. The U.S. Small Business Administration, Utah Governor’s Office of Economic Opportunity and Utah Small Business Credit Initiative also offer invaluable resources for fledgling business owners.
But the point is, if you want to start a small business in Utah — as the adage goes — “this is the place.”
Kinsey Love is the digital marketing manager for AltaBank in American Fork.