The Best Small Business Loan Options in Colorado Expalined
The Colorado office of the Economic Development and International Trade (OEDIT) manages the Colorado Business Loan Fund. OEDIT manages 14 different loans that help small business owners across the state.
As a business owner, you can request one or several of these loans to kick-start your startup or improve an existing business. To get approved for a financial loan, you need to satisfy a job creation requirement. First, you need to create a job for every $20,000 that you request in loan funds. It means that if you request $100,000 in loan funds, you need to have created five jobs.
Additionally, over 50% of the jobs created should be filled by people with low-to-moderate income. The loan application will require you to submit a financial projection and business plan. If you have an existing startup, you’ll need to submit your financial statement history.
In most cases, small business owners applying for the funds usually seek more than $100,000. But, if you apply for an amount less than that and you have five or fewer workers, you can qualify for a Micro-Enterprise Loan.
Colorado Enterprise Fund is a nonprofit organization that has been in existence since 1976. The nonprofit lender specializes in helping people finance their ideas. Since its inception, the nonprofit organization has issued more than 2,000 loans to small businesses.
Besides providing you with loans, the organization will also support your business by offering mentorship, online tools, and business coaching to help you achieve your goals.
Colorado Enterprise Fund also offers other specialized loans, such as the Healthy Foods Fund program, which offers up to $250,000. The funding program is for startups such as agriculture businesses, food trucks, grocery stores, and other food-related ventures.
Additionally, the institution also offers valor loans for veterans. The loan funding offers up to $500,000, and it comes with a 10-year term. Colorado Enterprise Fund also provides SBA community advantage loans, which give up to $250,000 with a 25-year term.
Other financing options available through this institution include:
- Step-up loans: Offer up to $500,000 with a 10-year term.
- Just in time lines of credits: Offer up to $100,000 with a 2-year term.
- Commercial real estate loans: Offer up to $500,000 with a 7-year term.
- Dream Big microloans: Offer up to $50,000 with a 7-year term.
- Gap loans: Offer up to $500,000 with a 25-year term.
When applying for funds, the organization will consider some factors, to determine whether to approve your loan application or not. These include:
- Personal credit score
- Industry experience
- Equity
- Payment history
- Collateral
- Cash flow and profitability
Colorado Lending Source is another nonprofit organization that has been providing financing to small businesses since 1990. In 2018, the nonprofit lender provided more than 221 loan fundings to businesses in Colorado. The lending institution is well known for its SBA loans.
SBA loans are government loans that offer a long-duration payment plan with low interest for lenders. Some examples of these SBA loans include general small business loans, microloans, commercial real estate loans, and community advantage loans.
Microloans are also called Colorado Main Street loans. It's a character-based microloan that helps you start or expand your business. The program offers up to $50,000, and it’s available to startups that can't afford a conventional loan.
Community advantage loans are primarily for underserved communities. If you own a small business in a community with a low income, then you might qualify for this loan. To apply for this loan, you need to state the amount you need and what you want to finance. After that, you will need to submit your business plan and other required documents.
Bank of Colorado has been supporting small businesses with local fundings for more than 100 years. The Bank has all the experience required to help you find the kind of loan you need. The Bank has branches throughout the state, including Denver, Akron, Fort Collins, and Colorado Springs.
Similar to other banks, all loan applications through the Bank of Colorado will require collateral. Fortunately, the collateral isn’t limited to real estate. You can use other assets as collateral, including equipment, inventory, and account receivables. If you have an agribusiness that requires funding, the Bank of Colorado is a great option to consider.
The Bank has more than 100 years of experience working with agribusiness. And they have special financing programs for it, such as the agric loans and line of credits, and livestock loans. Bank of Colorado offers other financial funding options for small businesses. These include business loans, lines of credit, equipment loans, and more.
Community Banks of Colorado is a subdivision of NBH Bank. It’s an FDIC-insured bank that serves clients throughout Colorado. The Community Banks of Colorado has an extensive portfolio of products and services to satisfy small businesses, consumers, and commercial clients.
Besides being a nonprofit organization, small businesses can choose from a wide range of financing products. For instance, you might see that a term loan is best for significant investments, such as expanding your farm mortgage or constructing new buildings. But, if you’re looking for an emergency business loan, the business line of credit is a great option to consider.
Additionally, Colorado's Community Banks also provide loan fundings for community associations, farms, and healthcare ventures.
