From Deseret News archives:
State money sought to aid rural firms
Now, rural economic development leaders say, the Legislature should allocate $2 million from the state's general fund to keep the program going in Carbon, Emery, Grand and San Juan counties and expand it into Duchesne, Uintah and Daggett counties.
A review conducted by the the state's Office of Legislative Auditor General found that the Southeast Utah Small Business Investment Fund helped give life to atypically successful businesses and created jobs (albeit not always high-paying ones) in rural Utah. Launched in October 2001, the program provides seed capital to help cover business start-up expenses for low-income participants who complete business training, agree to mentoring and submit a business plan for review. It was administered by the Southeast Utah Association of Local Governments and other volunteers.
According to the Auditor General's report, the program is meeting with some success. In 2006, the audit found that 52 of 79 businesses (66 percent) created under the program were still operational and successful with "success" defined as a business operating at a higher level than a profitable hobby.
From a sample of 22 businesses, the audit found that about 59 jobs had been created as a result of the program by the end of 2005, up from 48 in 2004. While those jobs were generally below county averages the majority of participants reported making less than $25,000 per year the audit said the jobs created did not appear to be ones that typically displaced other jobs in the county.
"We believe that the SEUSBIF program created an economic benefit for rural counties in southeastern Utah," the report stated. "While dollars infused into the economy and jobs created provided moderate economic benefit, there appeared to be a positive impact for families who were living on low wages."
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