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Colorado has plenty of new and long-running businesses resources available, but it’s not always easy to know where to start.
Before going down the rabbit hole, it is important to define what resources or assistance you are looking for. To start, ask yourself these questions:
- What do I want my business to achieve in the next one to two years?
- What do I need in order to achieve that goal? Where are my gaps?
- Do I need capital? If so, would I move forward with a loan or do I need a grant?
- Do I need guidance or mentorship?
From there, explore business resources available through the Colorado State Office of Economic Development and International Trade (OEDIT).
OEDIT provides an easy online platform tool (http://www.oedit.colorado.gov/programs-and-funding) to sort the resources depending on your business needs. There are a remarkable number of offerings from financial to technical assistance available.
One of the top pressures today is the rise of inflation and the availability of capital. These resources are a good starting point for businesses to explore that may help address challenges related to access to capital.
Cash Collateral Support: The Cash Collateral Support program helps small and medium-sized businesses in Colorado access loans that they would otherwise not get because they do not have enough collateral. This credit enhancement uses small amounts of public resources to encourage private lenders to loan money to businesses. The program provides a cash deposit as collateral for a business loan or credit facility when the business cannot meet the lender’s collateral requirements.
Lenders can apply for up to 25% of the loan amount or $250,000, whichever is less, in collateral to support business loan applications. The maximum loan size is $10 million.
Benefits to lenders include:
- low-cost credit enhancement option
- deposits are held by the partner lender
OEDIT along with the Colorado Economic Development Commission (EDC) have provided $15.2 million in funding for this program through federal Small Business Jobs Act of 2010 funds.
The Colorado Housing and Finance Authority (CHFA) manages this program and is the main point of contact.
Climber Loan: The CLIMBER (Colorado Loans to Increase Mainstreet Business Economic Recovery) Loan Fund provides up to $250 million in working capital loans to Colorado small businesses negatively impacted by the pandemic through 2023.
Lenders, community development financial institutions (CDFIs), credit unions, and nonprofit lenders can participate and provide loans for their small business customers needing financial assistance.
Small businesses with 1 to 99 employees that were financially stable before the pandemic but now need help to survive may apply for working capital loans between $10,000 and $500,000. Below-market interest rates and a one-year deferred payment option make the program a secure recovery option.
One-on-One Support: This program supports entrepreneurs and small businesses with all aspects of business planning, market analysis, management, cash flow, and growth strategies. Offering no-cost consulting, free or low-cost training, and access to capital.
Business Foundations Technical Assistance Grant: Provides small Colorado businesses up to $1,200 in technical assistance and small grants to help businesses legally establish themselves.
You can find more information on each of these resources at bit.ly/ProsperGlenwood.
Danielle Campbell (she/her) is the economic development specialist for the city of Glenwood Springs. She supports professional and technical assistance in supporting the city’s economic development goals and vibrancy, working every day to support business retention within the city. Her mission is to help all businesses thrive. Contact her at danielle.campbell@cogs.us or at 970-384-6424.
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