As of August 31, 2020, Colorado small businesses and non-profit with fewer than 25 full time employees can apply for grants and low interest loans from the state. The Colorado General Assembly designated certain funds the state received from the CARES Act to go towards funding this endeavor.
This is not a first-come-first-serve application process. Applications will be reviewed, and funds will be released in rounds. The fund will look to get money to those small businesses and non-profits that demonstrate the most need and financial hardships. There will be priority given to certain groups mentioned below. There are restrictions on what the money may be spent on such as: losses or expenses reimbursed or covered by any other federal program, taxes, lobbying, and capital purchases. You can find the application and more information at the fund’s website here.
- Up to $15,000 in grants
- Up to $20,000 in low interest loans.
- The maturity rate is 24 to 36 months.
- The interest rate is: 0 to 4 months payment deferment and no interest / Initial 5-12 months: 1% / After 12 months: 1.5%
- No payments the first 4 months. No prepayment penalty.
- Combination of the above for a combined total of up to $35,000.
- Small Businesses: This includes sole proprietors, LLC’s, S-Corps, and other business types.
- Colorado Non-profits: Whose mission and/or programs directly support economic development, small businesses, or tourism.
- Employees: Must have fewer than 25 full-time equivalent employees. Employers may use their off-season employee count.
- COVID-19 Related Hardship: Applicants must be able to demonstrate the COVID-19 related economic hardship they are experiencing. This includes a narrative explaining the business’s story, as well as supporting documentation (bank records, tax filings, point of sale records, profit and loss statements, etc.).
The following groups will be given priority in the application process:
- Majority-owned by Black, Indigenous, People of Color, Veterans, or Women.
- Businesses/non-profits located in rural areas with populations of less than 50,000 people.
- In the tourism sector.
- Businesses/non-profits that have limited or no access to capital financing, or other federal, state or local grants/loans.
Author: L. Maverick Flowers
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