BY FREDA MIKLIN
The State of Colorado, through its Office of Economic Development & International Trade (OEDIT), recently created the Colorado Startup Loan Fund with $31.35 million available for loans from $10,000 to $150,000 for small businesses.
Fifteen mission driven non-profit lenders and community development financial institutions located all around the state are accepting applications and making the actual loans. They are: B:Side Fund, Community Enterprise Development Services, Colorado Enterprise Fund, Exponential Impact, First Southwest Community Fund, Lendistry, Region 9 Economic Development District, Northeastern Colorado Revolving Loan Fund, Rocky Mountain MicroFinance Institute, Clear Creek Economic Development Corp., Prairie Development Corporation, Southeast Colorado Enterprise Development, San Luis Valley Development Resource Group, Region 10 League for Economic Assistance & Planning, and Business Loan Fund of Mesa County.
These loans are targeted at small businesses, especially those in underserved communities, that need capital to start, restart, or restructure, especially if they are not able to qualify for a business loan from a traditional lender.
OEDIT also has multiple programs for business owners who need technical assistance and general guidance on how to start, run, and grow a business. They can even help a new business owner apply for an employer identification number from the Internal Revenue Service.
In order to qualify for a Colorado Startup Loan, a business must be for-profit, have 25 or fewer full-time employees and no more than $2 million in annual gross revenues. It must also have its primary business activities in Colorado, as well as a majority of its employees, and be unable to obtain financing from traditional banking institutions. Loans can be used for startup expenses, equipment, commercial real estate, tenant improvements, and working capital. Repayment terms cannot exceed 10 years.
Additional information can be found at https://oedit.colorado.gov/colorado-startup-loan-fund or by calling 303-892-3840.