Colorado Startup Loan Fund Program
Partners Invited to Apply to Administer Startup Loan Fund Program
We are accepting applications for program administrators for the Colorado Startup Loan Fund. Mission driven nonprofits, technical assistance providers, and community development financial institutions are encouraged to apply. View the solicitation on the State of Colorado Vendor Self Service (VSS) portal under solicitation number 2022000153.
Apply by 2pm on January 5, 2022.
The Colorado Startup Loan Fund provides loans and small grants to Colorado entrepreneurs and small business owners needing capital to start, restart, or restructure a business, and those who are not able to obtain a loan from traditional lenders. This is a revolving loan fund, meaning the dollars will be used to continue supporting new entrepreneurs as loans are repaid.
Despite considerable efforts to support existing businesses with financial resources throughout the COVID-19 pandemic, many businesses have already closed. As a result, there are opportunities to open new businesses to fulfill returning and new demand. Entrepreneurs who filed for bankruptcy or closed their doors due to COVID-19 may be prevented from re-entering the market because of low credit scores or other pandemic-related financial impacts. This fund supports the creation of new business and restructuring of existing businesses to operate in today’s market.
Program details including eligibility and the application process are being defined. Partner lenders will most likely be ready to take applications by summer 2022. Sign up for OEDIT email updates for program developments.
The fund will focus on:
- existing businesses that need to restructure, redefine their business model, or recapitalize as a result of the COVID-19 pandemic
- new businesses filling gaps left in a community or industry by closures resulting from the COVID-19 pandemic
- entrepreneurs who experienced financial losses or other impacts from the COVID-19 pandemic that may inhibit their obtaining capital through traditional sources
- people that face barriers to accessing capital from traditional sources
We are partnering with mission driven non-profit lenders and community development financial institutions (CDFIs) to administer the program. The benefit of working with these organizations is that they:
- often provide credit where normal bank underwriting and loan size limitations prevent traditional lenders from making loans
- have more flexible repayment and restructuring options
- provide more technical assistance and deeper outreach to underserved communities than traditional lenders
- are mission driven, so their interest rates and fees are lower than those provided by credit cards or payroll lenders
- support the economic advancement of populations and businesses that have lacked access to more traditional sources of capital
Overview
Type: Loans
For: Small businesses
Application period: Applications are anticipated to available summer 2022
Amount: $31.35 million available
OEDIT division: Business Funding and Incentives
Contacts
Business Contact
MarvinEarle
Access to Capital Community Relations Manager
Lender Contact
KyliePeterson
Colorado Startup Loan Fund Program Manager
SOURCE https://oedit.colorado.gov/colorado-startup-loan-fund