Entrepreneurship boomed in the wake of the COVID-19 pandemic. Now many of these newly formed small businesses are expanding, creating jobs and contributing to the local economy, according to Zions Bank data.
Zions Bank — ranked No. 1 in SBA 7(a) loan approvals in the Boise and Utah Districts during fiscal year 2024 — helped Utah and Idaho entrepreneurs fund their businesses by approving 285 U.S. Small Business Administration 7(a) loans totaling more than $63.8 million, according to SBA data for the fiscal year that ended Sept. 30.
Of the SBA loans approved by Zions Bank, nearly 42% were made to businesses that were established after March 2020 when the pandemic began.
“A silver lining of the pandemic is that we’ve seen entrepreneurship flourish as a shifting economic and social landscape prompted people to start new businesses at record rates,” said Zions Bank President and CEO Paul Burdiss. “We’re proud to support these businesses as they create jobs and build our economy.”
Between March 2020 and March 2021, 14,873 small businesses were established in Utah, compared to 12,513 in the 12 months prior. And from March 2021 to March 2022, 16,505 small businesses opened in the state, according to the SBA data.
Idaho saw a similar surge in start-ups, with 9,685 small businesses opening from March 2020 to March 2021 and 11,426 opening from March 2021 to March 2022, compared to 8,225 openings from March 2019 to March 2020.
That trend has only accelerated, with a record 5.5 million new business applications filed in the U.S. in 2023, according to the U.S. Chamber of Commerce. New business applications grew 21.5% in Utah and 10% in Idaho from December 2022 to December 2023.
In 2024, Zions Bank helped Utah and Idaho businesses grow so they could create 868 new jobs and retain 1,544 existing positions, according to SBA data.
These small businesses are borrowing modestly, as reflected by an average loan size of $191,275 in Idaho and $241,856 in Utah. Nationally, average 7(a) loan sizes have been trending downward since 2021.
Loans approved by Zions Bank represent more than 19% of the 7(a) loans in the Boise District and 15% of the 1,154 7(a) loans in the Utah District during the last fiscal year.
Zions Bank continues to be a leader in marketing SBA loans to Utah and Idaho businesses owned by women and people of color, which accounted for 21% of the 7(a) loans approved by Zions Bank in the Boise District and 32% of the approved 7(a) loans in Utah during the period.
The 7(a) loan program is the SBA's primary program for providing financial assistance to small businesses and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. These loans are commonly used for acquiring land, purchasing equipment or working capital.
Are you looking for a bank that’s invested in your small business’ success and future? Zions Bank’s team of relationship managers can provide small business success strategies as well as funding options, including SBA loans. Visit a local Zions Bank branch to learn more about your small business lending options.
