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 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).
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 OPI 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:
110 Santa Fe Ave.
La Junta, 81050
719-384-7411
seco.sbdc@gmail.com
https://www.southeastcosbdc.org
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 THE 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.
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.
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.