Rural Jump-Start Grant Program

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

Geographic Scope: Rural, economically distressed counties in Colorado designated as Rural Jump-Start zones and Tier 1 Just Transition Communities

Current Rural Jump-Start Zones: Alamosa, Archuleta, Clear Creek, Costilla, Conejos, Delta, Dolores, Fremont, Garfield, Huerfano, Kiowa, Kit Carson, Lake, Las Animas, Lincoln, Logan, Mesa, Moffat, Montezuma, Montrose, Morgan, Otero, Phillips, Prowers, Pueblo, Rio Blanco, Rio Grande, Routt, San Juan, Sedgwick, and Yuma Counties

Eligible for Designation (not yet applied): Baca, Bent, Cheyenne, Crowley, Custer, Hinsdale, Jackson, Mineral, Saguache, and Washington Counties

Tier 1 Just Transition Communities: Moffat, Morgan, Pueblo, Rio Blanco, and Routt Counties, and Western Montrose County (these receive double the grant amounts)

Focus Areas

• Attracting new businesses to rural Colorado communities
• Encouraging business startups or relocations to economically distressed areas
• Job creation in rural communities

Business Eligibility Requirements

• Not be operating (selling a product or service) in Colorado at time of application
• Be located in a designated Rural Jump-Start zone or Tier 1 Just Community
• Not directly compete with another business in its county or adjacent economically distressed county
• Export goods and services outside the county (including tourism)
• Form a relationship with a sponsoring entity
• Plan to hire at least five qualified New Hires (not existing jobs relocating)
• Businesses may be in planning, fundraising, recruiting, market research, or proof of concept phases

Type of Support

• Grants up to $20,000 per new business in Rural Jump-Start zones
• Grants up to $40,000 per new business in Tier 1 Just Transition communities
• Up to $2,500 per new hire in Rural Jump-Start zones
• Up to $5,000 per new hire in Tier 1 Just Transition communities
• Matching grant structure: 3:1 ratio or 25% reimbursement (minimum $5,000)

General Terms

• Program Duration: Reauthorized; grant funding available until July 2025; tax incentives through January 2031
• Matching structure: businesses' operating expenses matched at 3:1 ratio or 25%, with minimum $5,000 reimbursement
• Covers operating expenses

Three-Step Application Process:

1. Work with a Sponsoring Entity
   • Partner with a sponsoring organization in your Rural Jump-Start zone
   • Create a "memo of understanding" (MOU) outlining the relationship
   • Specific criteria vary by entity (may include local academic research connection or commercial space lease)
   • Example: Routt County Economic Partnership may require joining their entrepreneurship program for support with business plans, pitches, and financial projections
2. Create an OEDIT Salesforce Portal Account
   • Set up account in OEDIT Salesforce portal
   • Allow several days for approval
3. Submit Your Application
   • Submit alongside the sponsoring entity
   • Submit application in Salesforce

Required Documentation:

• Detailed business plan
• Articles of incorporation or organization
• Statement of Good Standing from Colorado Secretary of State

Application Review Timeline:

• OEDIT first confirms no similar business operating in chosen zone or adjacent counties
• One-month challenge period: existing businesses may challenge application if they believe competition exists
• OEDIT reviews challenges and determines approval/denial
• Approved applications forwarded to monthly CEDC meeting (held third Thursday of each month) for final decision
• Expect approximately two months total for application review
• Eligibility for benefits begins upon approval date

Post-Approval:

• Submit annual report to determine tax benefit values
• Request reimbursement through grant funds

Key Recommendations

• Reach out to Rural Jump-Start Program director before applying
• Plan for plenty of time for collaboration with sponsoring entity
• OEDIT team available for assistance and guidance