SALT LAKE CITY--(BUSINESS WIRE)--In its first quarter of running Salt Lake County’s Economic Development Revolving Loan Fund (EDRLF), VentureCapital.org has awarded $1 million in total in higher-interest loans to three high-growth, high-tech companies with operations in the county.
The three companies that received EDRLF funds during the fourth quarter of 2016 are Clear Center (offices in Cottonwood Heights, Utah), Flying Software Labs (offices also in Cottonwood Heights), and ProdataKey (offices in Riverton, Utah).
“We are quite pleased to be able to announce that we are off to a roaring start in our role as the Administrator of Salt Lake County’s Economic Development Revolving Loan Fund,” said Brad Bertoch, President and CEO of VentureCapital.org®. “This $1 million in total monies loaned in the fourth quarter of 2016 represents over 14 percent of the total funds currently available through the EDRLF. So to the teams at ProDatakey, Flying Software Labs and Clear Center we say ‘Welcome Aboard;’ we look forward to working with you and seeing your great growth in 2017 and beyond.”
Within its role as the Administrator of the EDRLF, VentureCapital.org identifies and determines the credit-worthiness of high-tech, high-growth businesses in Salt Lake County to receive loans ranging from $150,000 to $400,000. Ventures that qualify for EDRLF funding do not have access to typical bank loans yet need capital to help them grow. Hence, the three- to five-year loans proffered through the EDRLF are set at a higher interest rate than those offered by private lending institutions. In addition, businesses that receive EDRLF loans must be located within an economically distressed portion of the County. The firms also agree that over the term of the loan they will hire at least one additional employee for every $35,000 in monies received.
“Plain and simple, we need additional capital as we transition from startup to growth mode, and in that regard, this EDRLF loan fits the bill perfectly,” said Jack Garzella, CEO of Flying Software Labs.
“This EDRLF loan is perfect for us as we prep for significant opportunities in 2017 and beyond,” said Evan Tree, CEO of ProdataKey.
VentureCapital.org was awarded a three-year contract to manage the EDRLF program for Salt Lake County in July 2016, and following a short transition period, began fully running the program in October of 2017.
The Economic Development Revolving Loan Fund was started 25 years ago by Salt Lake County in partnership with (and an initial grant from) the U.S. Department of Housing and Urban Development (HUD) as a $2 million fund targeting small businesses that need short-term capital in economically challenged industries and/or sections of Salt Lake County. In early 2013 the EDRLF was expanded to $7 million through the participation of six current and former banks.
VentureCapital.org is a 501(c)(3) non-profit (formed in 1983 as the Wayne Brown Institute®), and it is one of the oldest and most successful venture acceleration organizations in the world. Thousands of companies have been served by VentureCapital.org, and over 850 firms have participated in its annual Investors Choice™ Venture Capital Conference. Since 2009, VentureCapital.org alumni companies have realized over $7 billion in monies raised or investor payouts via Merger & Acquisition transactions. For more information, call 801-595-1141 or visit www.VentureCapital.org.
VentureCapital.org, Investors Choice, and Wayne Brown Institute are each trademarks of the Wayne Brown Institute. All other trademarks are property of their respective owners.