What is Business Loan Fund?
The BLF is an alternative (gap) financing method designed to help finance business projects that will positively impact the economic health of the communities within Baca, Bent, Crowley, Kiowa, Otero and Prowers counties. Individuals who meet eligibility requirements may apply.
Business Loan Fund (BLF) for Small Business Development
What businesses are eligible?
- Businesses located within the five county area listed above
- Businesses designed for profit
- Businesses authorized to conduct business in Colorado
How can I use the funds?
- Purchase of an existing business
- Start-up costs for a new business
- Purchase of real estate
- Purchase of equipment, furniture, fixtures, machinery or inventory
- Working capital
Funds may not be used for:
- Construction or remodeling
- Refinancing debt
- Payment of delinquent taxes
- Buying out existing owners, partners or shareholders
- Not-for-profit businesses
How will my application be evaluated?
- Ability to create or retain jobs filled by income-qualifying persons
- Management abilities
- Experience
- Financial condition of the business and its owners
- Cash Flow shows the ability to repay loan
- Credit history of owner
- Owner’s willingness and ability to invest in the business
- Sufficient collateral
- Community benefit
- Available funds
Business Loan Fund Loan
- Maximum loan amount is $250,000
- 10% owner equity required
- Terms of loan not to exceed 10 years
- Interest rate based on New York Prime
- Collateral requirements and personal guarantees based on individual applications
- $50 application fee due at application submittal
- 2% origination fee due at loan closing
- The business is required to create or retain one job for every $20,000 borrowed
- At least 51% of jobs must be filled with income-qualifying individuals
Micro Loan
- Maximum loan amount is $100,000
- See BLF Loan Information for qualified and ineligible uses of these funds
- Must have five or fewer employees including the owner
- Business must be for profit
- RLF dollars limited to 90% of project
- Loan term 10 years or less
- $50 application fee due at application submittal
- 2% origination fee due at loan closing
- Under certain circumstances and strictly a case by case basis, funds may be used to buy out existing owners, partners or stockholders