Pictured above is the skyline of a city in Utah. The state of Utah will soon be welcoming Earnest and 500 new employees into their state.
Student loan refinancing and online personal lending company Earnest will expand their business operations to the state of Utah by adding up to 500 jobs and $5.6 million in capital investment, according to a press release issued by the Utah Governor’s Office of Economic Development.
The anticipated jobs, which could total up to 500 new employment opportunities, and the capital investment of $5.6 million will be spread out over the next five years. For Earnest, the expansion into Utah represents the first time the student loan refinancing company is branching out past their headquarters in San Francisco, California.
Currently, Earnest’s San Francisco office houses 150 employees. The new office in Utah will look to bring on employees that specialize in a variety of fields that are conducive to the Earnest business operation.
Louis Beryl, CEO and co-founder at Earnest, produced the following statement for the press release: “Utah has become a thriving hub for both technology and financial services companies, with a deep talent pool across multiple areas that is complementary to what we see in San Francisco. Expanding to Utah is an important next step as we continue working to build the modern bank for the next generation.”
By creating 500 jobs over the next five years, Earnest figures to be a big economic producer in the state of Utah. The state of Utah projects that Earnest will provide employees with an average yearly wage of $63,622. Additionally, the state projects that Utah will bring in $14,017,108 in revenue because of Earnest’s expansion. The revenue will stem from corporate, payroll, and sales taxes.
The President and CEO of the Economic Development Corporation of Utah, Theresa Foxley, had the following to say: “We welcome Earnest and hope they take full advantage of our competencies in IT and financial services.”
Earnest is one of the many fin-tech companies that has grown quite quickly in recent years as people look to integrate technology into everyday financial matters to make the process more streamlined and personalized. While the company specializes in student loan refinancing, they also offer personal loans to qualified borrowers, as well as Parent PLUS refinancing. The company places much value on data to present high-quality borrowers with low-interest rates.
While more traditional financial institutions prioritize credit scores when evaluating borrower-risk, Earnest looks at other factors including education, income, and employment.
Because of a tax credit rebate offered by the state of Utah, Earnest has the potential to earn back as much as 20 percent of the state taxes they will pay over the next five years. Each year that Earnest fulfills the requirements laid out in its contractual agreement with the state of Utah, they will receive a portion of the total tax rebate. According to the press release, the tax rebate could be a maximum of $2,803,422.
Currently, an exact location has yet to be determined for the new Earnest office in Utah, but the fin-tech company is partnering with the local community to choose the most optimal site for the office.
This marks the second time in recent weeks that a student loan company has successfully brokered an expansion. Similarly on August 18th, The Student Loan Report covered the news regarding Sallie Mae receiving $2.16 million in grant money to expand their operation in the state of Delaware. After successfully pitching their expansion proposal to the state of Delaware, Sallie Mae was awarded the $2.16 million in taxpayer-funded grant money. The student loan company intends to use the money to add 285 new jobs to the state of Delaware by 2020, while also renovating a 57,000 square-foot office in Delaware to house a modern call center.
Interestingly, Earnest was just in the news after a Bloomberg report said the student loan company is working with Barclays to find a buyer willing to purchase the fin-tech company for $200 million.
Image Copyright © Thomas Hawk