OGDEN — Small business owners in Ogden could soon be beneficiaries of a proposed change in a city-run loan program.
In a city council work session earlier this week, Ogden Community Development Manager Ward Ogden said the city administration is proposing a change to its Microenterprise Loan Program that would bump the maximum loan amount in the program from $20,000 to $90,000 and increase the loan repayment term from five to 10 years.
According to city council documents, the change is intended to make the microenterprise program more closely resemble the terms of the city’s Small Business Loan program, which provides financing for small businesses applying for loans between $5,000 and $90,000.
A microenterprise is defined as a commercial enterprise that has five or fewer employees, with the owner functioning as one of the employees. The loan program for microenterprises was first created in May 2016 and currently allows for loans of between $5,000 and $20,000 to business owners for both training and direct business expenses.
According to a program summary prepared by Ogden’s Community and Economic Development Office, those expenses could include technical assistance, product design, prototyping, patent applications, legal services, branding, marketing, operating capital and more. The MLP funds cannot be used for rehabilitation or construction projects.
Ogden’s MLP uses money from the city’s Community Development Block Grant fund, which comes from the federal government and is administered through the U.S. Department of Housing and Urban Development. Ogden uses the program to stimulate economic growth and to support new businesses in low- to moderate-income areas in the city and in industries selected by Ogden’s Business Development Office.
For more information on the program, go to www.ogdencity.com/1437/Business.