July 2, 2012

Cover Story

Built to Lead

Perhaps no Utah governor in modern memory comes to the office with a broad...Read More

Featured Articles

Flying High on Wings of Fiber

Biotech Pioneers

Sections

Features
A New Code

Features
Made—and Played With—in Utah

Features
Head of the Class

Features
A ‘Can-do’ Spirit

Features
Welcome to Utah

Features
Going Global

Features
If You Build It

Features
Right on the Money

Features
Under Construction

Features
A Power Trip

Features
GOED's Toolbox

Features
More than Meets the Eye

People
Derek B. Miller

People
Jeanette Herbert

People
Spencer P. Eccles

Article

Right on the Money

Utah’s Financial Services Industry is Strong, Stable…and Ready to Lend

Heather Stewart

July 2, 2012

Utah may be a desert—but it’s an oasis of capital for businesses looking to launch, expand and grow. The State’s financial services industry is remarkably diverse and strong, encompassing large national banks, a network of community banks, thriving credit unions and global industrial loan companies.

Bank on It
Utah has a very healthy balance of banks and credit unions, providing a tremendous depth of options for individual depositors and businesses.

“We do have large national banks with branches here,” says Edward Leary, Commissioner of the Utah Department of Financial Institutions. “We also have a large regional bank headquartered here, Zions Bank.” The State is home to 29 state-chartered banks with combined assets of more than $90 billion. National banks account for another $104.5 billion in assets.

“Credit unions have been historically very strong in Utah,” say Leary, who notes that Utah has a high percentage of residents who are members of a credit union. Nearly 90 credit unions do business in Utah—and more than half of them are headquartered here.

Throughout the economic downturn, Utah’s financial institutions have remained stable and strong. “As far as the economy, Utah appears to be bouncing out of the current dilemma quicker than most states,” says Leary. Commercial banks and credit unions are ready and willing to lend to qualified borrowers.

The assets held in Utah’s depository institutions have grown, despite the national economic malaise. From fiscal year 2010 to fiscal year 2011, assets grew by more than 7 percent to $372 billion.

“Utah has become a global financial center,” says Howard Headlee, President of the Utah Bankers Association, who notes that international financial services companies like GE Capital and Goldman Sachs have set up operations in Salt Lake. In fact, Goldman Sachs has its second-largest division in Salt Lake, smaller only than its New York campus.

“Local companies have unprecedented access to capital when they need to expand,” says Headlee. “Utah’s banking environment is one of the strongest in the country. Our banks are well capitalized and well positioned—and eager to lend—coming out of this economic downturn.”

Serving Small Business
Small businesses and startups have tremendous access to capital in Utah. The State is among the top 10 SBA offices in the country for lending, and Utah ranks first for the number of loan approvals in SBA Region VIII. “Our approval rating is almost 70 percent of all submitted applications,” says Lori Chillingworth, Executive Vice President, Small Business Division, for Zions Bank.

In fiscal year 2011, the Utah SBA office guaranteed nearly $435 million in loans, benefitting more than 1,500 local small businesses.

“All of the banks in Utah are very aggressive in their SBA lending,” says Chillingworth. “We have a lot of SBA experts in the state who understand what the SBA requires.”

Zions Bank works closely with companies to walk them through the loan process and give them the best chance possible to qualify for an SBA loan. “We have a business resource center that helps business owners prepare their business plans and financial projections—whatever they need, at no charge. We try to make sure they have the resources to be successful in obtaining their loan,” explains Chillingworth.

Sometimes even a small infusion of capital can help a small business move to the next level. Micro loans, which are generally $35,000 or less, make it possible for businesses to purchase new equipment or vehicles, add capacity or invest in technology. The Utah Microenterprise Loan Fund has been providing such loans in Utah for two decades. Over the years, the Fund has arranged loan financing for more than 700 companies throughout the State.

Capital of the Industry
Utah is one of only a small handful of states that are chartered to oversee industrial loan companies, also known as industrial banks. And due to a favorable regulatory environment and the support of local lawmakers, Utah’s industrial banking industry is one of the nation’s strongest.

“This is a great place to do business. It’s not because it’s the Wild West of regulations—it’s because the regulators are firm but fair. They’re there to protect the consumer but also the business owner from unreasonable laws,” says Frank Pignanelli, Executive Director of the National Association of Industrial Bankers.

Industrial banks are able to make all kinds of consumer and commercial loans. They can offer FDIC-insured deposits and are subject to FDIC and state regulatory oversight. “There are really strict capital requirements; they have to be very well capitalized,” says Pignanelli.

Page 123
Utah Business Social
UB Events View All
Health Care HeroesUtah Business Event
Oct 21, 2014
Please join us, along with our sponsors, MountainStar Healthcare, and Roseman University in honor...
Content Marketing BootcampUtah Business Event
Oct 28, 2014
Please join Utah Business Magazine and Adobe, along with our other sponsors: Boostability, Right ...
Sustainable Business Awards 2014Utah Business Event
Nov 13, 2014
Utah Business magazine along with presenting sponsor Big D Construction, is pleased to announce t...
Community Events View All
St. George Book Festival - Author Appearances
Oct 21, 2014
Free to the Public Locations: Washington County Schools, Bookstores, Libraries & St. George C...
InDesign Level 1
Oct 21, 2014
Come see why InDesign is gaining popularity in the desktop publishing world. In this 14-hour, int...

info@utahbusiness.com  |  90 South 400 West, Ste 650 Salt Lake City, Utah 84101   |  (801) 568-0114

Advertise with Utah Business

Submit an Event

* indicates required information
* Event Name:
Price (general):
Website (if applicable):
Coordinator's Name:
Coordinator's Email:
Coordinator's Phone:
Venue Name:
Venue Address:
Venue City:
Venue Zip:
Event Capacity:
Date(s):
to
* Event Description:
  Cancel