Colorado Startup Loan Fund

Funder: Colorado Office of Economic Development and International Trade (OEDIT)

Geographic Scope: Colorado statewide (all regions)

OEDIT has partnered with eight mission-driven lenders to provide micro-loans under $150,000 to small business owners and entrepreneurs needing capital to start, restart, or restructure a business. The program focuses on entrepreneurs unable to obtain loans from traditional lenders.

Business Types Served

• Existing businesses unable to qualify for traditional financing
• New businesses unable to qualify for traditional financing
• Existing businesses experiencing financial losses or impacts from COVID-19 pandemic

Area of Focus

• Businesses unable to qualify for traditional financing
• Businesses restructuring or recovering from financial hardship due to COVID-19
• Increasing capital in underserved communities

Type of Support

• Loans up to $150,000 (each lender offers different minimum sizes starting at $10,000)
• Loan terms:
  • Interest rate: 4% + WSJ (Wall Street Journal) prime rate
  • Length: up to 10 years
  • Origination fee: up to 3% of principal

Eligible Uses

• Startup working capital (with cash flow projections showing future debt service coverage)
• Working capital
• Startup expenses
• Tenant improvements
• Commercial real estate
• Equipment
• Debt restructuring (in some cases)
• Business acquisitions (in some cases)

Business Eligibility Requirements

• For-profit entity located in Colorado with primary business activities in state
• Majority of employees working in Colorado
• 25 or fewer full-time employees (FTE) at time of loan issuance
• Maximum $2 million in gross annual revenues in fiscal year preceding application
• Maximum $2 million projected gross annual revenue in upcoming fiscal year
• Unable to obtain traditional financing

Participating Lenders

1. B: Side Fund
2. Community Enterprise Development Services (CEDS Finance)
3. Colorado Enterprise Fund XI – Exponential Impact
4. First Southwest Community Fund
5. Lendistry
6. Region 9 Economic Development Group/Rural Consortium 6
7. Rocky Mountain MicroFinance Institute (RMMFI)
8. Northeastern Colorado Revolving Loan Fund
9. Clear Creek Economic Development Corp
10. Prairie Development Corporation
11. Southeast Colorado Enterprise Development
12. San Luis Valley Development Resource Group
13. Region 10 League for Economic Assistance and Planning Business Loan Fund of Mesa County

How to Apply

1. Identify Your Lender
   • Determine which lender serves your geographic area
   • Consider which lender offers the type and size of loan you need
   • Each lender has unique eligibility requirements and offerings
2. Apply Directly with Lender
   • Apply directly to the mission-driven lender serving your area
   • Note: OEDIT does not collect applications directly
   • Each lender has their own application process and timeline
3. Technical Assistance (if required)
   • Some lenders may require participation in their technical assistance programming for loan eligibility
   • Confirm requirements with your selected lender

Eligibility Determination

• Each lender will have unique criteria for identifying small businesses unable to secure traditional financing
• Criteria may include:
  • Low- to moderate-income borrowers
  • Poor or unestablished credit scores
  • Startups in operation less than six months
  • Other lender-specific criteria

Key Information

• Minimum loan size: $10,000 (may vary by lender)
• Maximum loan size: $150,000 (may vary by lender)
• Timeline varies by lender
• Each lender has independent underwriting and approval processes