Rural Jump-Start Program Grant

Funder: Colorado Office of Economic Development & International Trade

The Rural Jump-Start Program Grant, managed by the Colorado Office of Economic Development and International Trade, incentivizes new businesses to establish in rural, economically distressed areas. It offers tax benefits and matching grants up to $25,000 for eligible businesses. Applications for tax benefits are accepted until December 31, 2030, and for grant benefits until June 30, 2028. This initiative aims to foster economic growth and job creation in designated Rural Jump-Start zones.

Note: The Rural Jump-Start Program will accept applications for the tax benefits through December 31, 2030 and for the grant benefits through June 30, 2028
Colorado Office of Economic Development and International Trade
The Colorado Office of Economic Development and International Trade (OEDIT) creates a positive business climate that encourages dynamic economic development and sustainable job growth. We advance the state’s economy through financial and technical programs under the leadership of the Governor and Executive Director.
Program Summary
The Rural Jump-Start Program is a collaborative effort by the state, local governments, Institutes of Higher Education (IHE), and economic development organizations (EDO) to incentivize new businesses to start in or move to rural, economically distressed counties in Colorado, which are referred to as Rural Jump-Start zones, and hire new employees.
Rural Jump-Start began in 2016 as a tax incentive program for businesses located in a Rural Jump-Start zone, and in 2021 a grant program was created.
Tax benefits include relief from:

• State income tax for the new business;
• State sales and use tax for the new business;
• County personal property tax for the new business;
• Municipal personal property tax for the new business (in participating municipalities); and
• State income tax for qualified New Hires.
• Grant benefits are dependent on the business' location:
• If a business is located in a Rural-Jump Start zone, businesses can receive a matching grant of up to $15,000 as a newly established business.

If a business is located in a Rural-Jump Start zone that is also a Tier 1 Just Transition community, businesses can receive a matching grant of up to $25,000 as a newly established business.
The Rural Jump-Start Program will accept applications for the tax benefits through December 31, 2030 and for the grant benefits through June 30, 2028.

Eligibility

New Business EligibilityTo qualify for the Rural Jump-Start Program, new businesses must meet the following requirements:Not be operating (selling a product or service) in Colorado at the time the business submits an applicationEligible businesses may be planning, fundraising, recruiting, doing market research, preparing for production (designing/prototyping), filing business formation or registration, or manufacturing and testing a proof of concept, even if some revenue is associated with the activity.Be located in a Rural Jump-Start zone;Cannot directly compete with the core function of another business that is operating in the applicant county or in any adjacent, economically distressed countyFor example, a coffee shop would not qualify unless there were no other coffee shops in that county or any adjacent countyExport goods and services outside the county (bring in income from outside the county)Form a relationship with a program Sponsoring Entity to align missions and benefit the communityAdhere to the business plan submitted during applicationNot be a sole proprietorPlan to hire at least three to five employees that meet the requirements for program New Hires by the 3rd full year in the program:

• The minimum hiring requirements for the Rural Jump-Start program are based on the population of the county where the business is located.
• Employees must meet the following program requirements to be considered a New Hire:
• Earn at least the county’s average annual wage or higher;
• Receive a W-2 from the business;
• Be legally allowed to work in the United States;
• Be a resident of Colorado;
• Be employed for at least six months with the business;
• Be a full-time employee (work at least 35 hours per week); and
• Spend at least 80 percent of their non-travel time at a location inside the Rural Jump-Start zone (they do NOT have to live in the zone)