Human Interest, San Francisco-based 401(k) provider recently announced plans to establish operations in Utah. The Utah Governor’s Office of Economic Opportunity awarded the company with a post-performance state tax credit of 15% over five years for its expansion in Utah. The corporate incentive is part of the state’s Economic Development Tax Increment Financing (EDTIF) program. As part of the agreement, Human Interest plans to add 306 new, high-paying jobs and invest $3 million in Utah during the next five years, amounting to over $74 million in gross wages or $2.85 million in expected state tax revenue. According to LinkedIn, the company currently employs 787 people.
“We welcome Human Interest to Utah’s business community,” says Ryan Starks, executive director of the Governor’s Office of Economic Opportunity. “As Utah was recently ranked the No. 1 best state in the U.S. for starting a business, Human Interest’s services will greatly complement and serve Utah’s small and midsize business ecosystem.”
Founded in 2015 by Paul Sawaya and Roger Lee, the company offers an end-to-end technology solution that enables its customers to offer retirement accounts with zero transaction fees for companies and their employees, which the company says is a first in the industry. It also claims to a participation rate that is two times the industry average. The company says is platform and 401(k) plans are are affordable, flexible and customizable and can solve administrative and compliance problems for small and medium-sized businesses. Human Interest’s technology focus has enabled it to build products that are easy to navigate and able to scale with an organization’s growth. The company offers end-to-end management that reduces the administrative burden for the employer, allowing organizations to better compete for and retain talent.
“We are excited to open an office at Silicon Slopes to tap into the large pool of highly-qualified talent in Utah,” says Rakesh Mahajan, Chief Revenue Officer at Human Interest. “Our organization has seen three times the growth in the past year and this investment in Utah will fuel that momentum.”
Human Interest may receive up to 15% of the additional state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Financing (EDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year Human Interest meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
Since its founding in 2015, the company has raised over $497 million in funding over multiple rounds. In January 2023 Blackrock, the largest asset manager in the world, acquired a minor stake in the company for $161 million.
According to the company’s marketing materials, Human Interest was founded on a simple idea: Affordable, zero-transaction fee, 401(k) plans for small and medium businesses. Businesses that, historically, never had access to these types of investment and tax-benefit retirement vehicles.
“We welcome Human Interest as they make their first investment in Utah,” said Scott Cuthbertson, president and CEO of EDCUtah. “As a small business 401(k) provider, Human Interest not only brings quality jobs to Utah but also adds a helpful resource to the state’s small business environment.”