Frequently Asked Questions
WHAT BUSINESSES ARE ELIGIBLE?- Businesses located within the two-county area listed above- Businesses designed for profit or non-profit- Businesses authorized to conduct business in Colorado
HOW CAN I USE THE FUNDS?- Purchase of an existing business- Start-up costs for a new business- Purchase of real estate- Purchase of equipment, furniture, fixtures, machinery or inventory- Working capital
SPECIFIC LOAN FUNDS MAY BE USED FOR:- Construction or remodeling- Refinancing debt- Payment of delinquent taxes
HOW WILL MY APPLICATION BE EVALUATED?- Ability to create or retain jobs filled by income-qualifying persons- Management abilities- Experience- Financial condition of the business and its owners- Cash Flow shows the ability to repay loan- Credit history of owner- Owner’s willingness and ability to invest in the business- Sufficient collateral- Community benefit- Available funds
BUSINESS LOAN BASICS- Owner equity required for loans- Term of loan not to exceed 10 years- Interest rate +/- 2 points on New York Prime- Collateral requirements and personal guarantees based on individual applications- $50 application fee due at application submittal- 2% origination fee due at loan closing- The business is required to create or retain one job for every $20,000 borrowed for most loan funds- At least 51% of jobs must be filled with income-qualifying individuals for most loan funds.