Colorado Microloans Program
Colorado Start-ups Microloans
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.
The goal of this program is that Colorado small businesses have adequate access to capital. OEDIT has provided capital to three non-profit lenders, who are charged with making loans to start-up or entrepreneurial small businesses that are not being adequately addressed by other government programs or non-profit lenders. The program focuses on small, character-based loans to start up companies, especially in rural areas.
- The borrower can have no more than 15 employees at the time the loan is made.
- The borrower must be documented by the lender as an “underserved small business.”
- The borrower is a for-profit entity located in Colorado with a majority of employees working in Colorado.
- In the judgment of the lender, the borrower has substantial possibility to become a viable business with the potential to create good jobs.
- The borrower must meet the underwriting standards of the lender.
- The loans amount must be between $5,000 and $50,000.
- The loan term may be up to 8 years.
- The maximum interest rate allowed is the prime rate plus 2%.
Businesses interested in this program can contact any of the following lenders:
Colorado Lending Source
Mike O’Donnell, Executive Director
First Southwest Community Fund
Sherry L. Waner, Specialized Lending Department Manager