Just The Facts

Frequently Asked Questions

CAN I GET GRANT MONEY FROM OPI?
Otero Partners, Inc. does not have any grant funding available for business start-ups. There are times when OPI will partner with Otero or Las Animas County and be the pass-through entity for projects such as tax credits or grant funds.
CAN I PAY MORE THAN MY SCHEDULED PAYMENT AMOUNT?
Yes, you may pay any amount over and above the scheduled payment amount either on a routine basis or randomly. Any extra you pay will be applied to the note principal resulting in less interest paid over the period of the loan and the loan being paid off in a shorter time period.
WHAT HAPPENS IF I AM UNABLE TO MAKE A PAYMENT?
If you are unable to make a payment you should contact your loan officer and make arrangements to make it up. Failure to make a payment will result in being charged a late fee and more interest being paid when the payment is made, causing the principal balance to be more than the amortization (payment) schedule.
IS THERE A PENALTY FOR PAYING MY LOAN OFF BEFORE THE MATURITY DATE?
No, the loan may be repaid at any time without a penalty.
WHAT IS THE REVOLVING LOAN FUND?
The Revolving Loan Fund (RLF) is an alternative (gap) financing method designed to help finance business projects that will positively impact the economic health of the communities within Otero and Las Animas counties. Individuals who meet eligibility requirements may apply.
WHAT BUSINESSES ARE ELIGIBLE?
For profit and non-profit businesses, authorized to conduct business in Colorado, which are located within Otero or Las Animas counties.
HOW CAN I USE THE FUNDS?
1. Purchase of an existing business.
2. Start-up costs for a new business.
3. Purchase of real estate.
4. Purchase of machinery & equipment, furniture & fixtures and inventory.
5. Working capital.
6. Refinancing debt (program specific).
7. Payment of delinquent taxes (program specific).
WHAT ARE SOME EXAMPLES THAT FUNDS MAY NOT BE USED FOR?
1. New construction.
2. Refinancing debt (program specific).
3. Payment of delinquent taxes (program specific).
4. Buying out existing owners, partners or shareholders.
HOW WILL MY LOAN APPLICATION BE EVALUATED?
1. Ability to create or retain jobs filled by income-qualifying persons.
2. Management abilities.
3. Experience.
4. Financial condition of the business and its owners.
5. Cash flow shows the ability to repay loan.
6. Credit history of owner.
7. Owner's willingness and ability to invest in the business.
8. Sufficient collateral.
9. Community benefit.
10. Availability of funds.
CAN SECED ADVISE PEOPLE WANTING TO START THEIR OWN BUSINESS AS TO HOW TO GET STARTED? WHAT LICENSES, FILINGS ETC. ARE NEEDED?
We do not have all that information but we can refer you to the
Small Business Development Center at Otero Jr. College in La Junta, CO. (719)384-6959.
HOW QUICKLY CAN I GET A LOAN?
Complete loan applications received by the first of the month will be reviewed by the Loan Committee and brought before the OPI Board of Directors at their regularly scheduled meeting. If the loan is approved, the loan can be closed in three to four weeks.

BUSINESS LOAN FUND OPI
WHAT IS BUSINESS LOAN FUND?
The BLF is an alternative (gap) financing method designed to help finance business projects that will positively impact the economic health of Otero County and Las Animas County. Individuals who meet eligibility requirements may apply.
Business Loan Fund (BLF) for Small Business Development

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, only applies to
- Refinancing debt
- Payment of delinquent taxes
- Buying out existing owners, partners or shareholders

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

BLF LOAN
- Maximum loan amount is $250,000
- Owner equity required in most for most loans
- Terms 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.

MICRO LOAN
- Maximum loan amount is $10,000
- Business must be in existence a minimum of 2 years
- See BLF Loan Information for qualified and ineligible uses of these funds
- Must have ten or fewer employees including the owner
- Loan term 3 years or less
- $50 application fee due at application submittal
- 2% origination fee due at loan closing

LOCAL ECONOMIC DOWNTURN LOAN (LED)
• Meet with OPI Loan Administrator
• Submit OPI’s Local Economic Downturn Business Loan Application
• Submit the past two years Income Statements and Balance
Sheets, or the past two years Tax Returns
• Submit current Personal Financial Statement
• Authorize an OPI credit check

Please click below to download our:
BLF Applicaion
BLF Financial Statement