DENVER – June 21, 2018 – The Office of Economic Development and International Trade announced that $200,000 of the Colorado Microloan Program has been allocated to assist disadvantaged small businesses impacted by the spring fires. These loans are targeted to keep disaster-affected businesses open and aid employee retention within these businesses.
OEDIT has authorized $200,000 ($100,000 each to First SW and Region 9) in program funds for the immediate deployment. Once the full allotments are allocated, OEDIT will assess any ongoing needs and identify how those needs are best fulfilled.
“Small businesses are the heartbeat of Colorado and it’s critical to support small businesses in their moments of greatest need,” said OEDIT director of funding and business incentives Jeff Kraft. “Colorado’s small businesses are incredibly resilient, but when disaster strikes even the most resilient need help. These loans provide the help for businesses in need.”
Colorado Microloans lenders, First Southwest Community Fund and Region 9 Economic Development District of SW Colorado, have been identified to support the core regions affected by fires: Alamosa and Durango. First Southwest Community Fund has already closed two loans with companies affected by the fires.
Loan amounts range from $5,000 to $30,000 with terms up to eight years. The maximum interest rate allowed is the prime rate plus 2%. The underwriting criteria for these loans are the same as those used for all loans made under the Colorado Microloans program including: 1.borrower may have no more than 15 employees at the time the loan is made, 2. borrower must be documented by the lender as an “underserved small business,” and 3. borrower is a for-profit entity located in Colorado with a majority of employees working in Colorado. For unique requests or larger loan needs contact Ken Jensen at OEDIT, [email protected].
About Colorado Microloans Program:
The Colorado Microloans Program provides small loans to start-ups and entrepreneurial small businesses that are underserved by traditional debt markets. This program is the creation of the Colorado Economic Development Commission (EDC), is administered by the Colorado Office of Economic Development and International Trade (OEDIT), and is implemented by the participating lenders.