February 22, 2023
The success of small businesses remains vital to the U.S. economy. But many small businesses—especially in rural areas—are struggling. With rising prices, an active job market, and larger companies to compete with, maintaining a small business is a challenging feat. One of the biggest roadblocks to success, though, is the lack of access to growth capital.
Rural businesses in Utah are getting a boost with the renewal of the Rural Jobs Act – a program incentivizing private capital investments in small businesses in 84% of the state’s counties. With a maximum check size of $5 million, qualified companies are empowered to revitalize and expand their operations.
Companies with 150 or fewer employees may qualify for flexible capital to support continued operations in their communities. The Rural Jobs Act, originally passed in 2017, was a massive success and has continued to prompt investment in industries ranging from aerospace manufacturing to pharmaceuticals. The Act’s 2022 renewal doubles down on the community-strengthening impacts of the program and ensures that it will continue to be a powerful agent of change and growth for Utah small businesses.
In Practice: The RJA Program brings much-needed jobs to rural communities
Applied Composite Technology Aerospace (ACT) is an aircraft component manufacturer for the military and commercial aerospace industries. The company, one of the largest employers in Gunnison, UT, needed financing to facilitate the internal transition of company ownership. A $2 million investment in connection with the RJA Program enabled the company to retain the next generation of management, fund anticipated growth, and hire new full-time employees.
Recursion Pharmaceuticals identifies treatments for rare diseases, aiming to discover 100 new treatments by 2025. In 2015, the company was unable to secure the capital it needed to expand. The investment provided growth capital for expansion, driving drug discovery, and supporting research and development efforts. It was also a strong factor in the company’s decision to stay in Utah rather than move to Silicon Valley.
Whether for business expansion, acquisitions, new equipment, working capital, or debt refinance, Utah small businesses need access to flexible financing. That’s why we have funds focused exclusively within the Beehive State to help drive growth and recovery for Utah companies. We provide debt and equity capital in areas and industries that have historically been overlooked by traditional forms of financing. We’re always looking for businesses that are ready for growth and impact in Utah because we believe capital changes lives.
Companies that may qualify are encouraged to visit advantagecap.com/Utah or reach out to Duncan Young at dyoung@advantagecap.com
