Cash Collateral Support

Program Summary

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. One of the goals of this program is to support employee ownership business transitions and financing for employee-owned businesses. For additional resources visit the Office of Employee Ownership.

Lenders can apply for up to 25% of the loan amount or $500,000, whichever is less, in collateral to support business loan applications. The maximum loan size for this loan is $20 million. Collateral caps may be increased for certain transaction types including those that support employee ownership.

Benefits to lenders include:

  • low-cost credit enhancement option
  • deposits are held by the partner lender

We 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.


Type: Credit enhancement

For: Businesses and lenders

Amount: Up to 25% of the loan amount or $500,000, whichever is less (Special use for employee-owned businesses). The maximum loan size eligible for this program is $20 million.

Application deadline: Rolling

OEDIT division: Business Funding and Incentives

The business borrower needs to have fewer than 750 employees at the time of the financing. For-profit, nonprofit, and manufacturing organizations are eligible.

Lenders need to demonstrate a:

  • collateral shortfall
  • reasonable expectation that the business borrower will repay the loan as agreed

Lenders may use Colorado Housing and Finance Authority deposits on most types of business loans. Cash deposits are pledged as additional collateral to the lender for an initial term of three years. For longer-term loans, lenders may request an extension for up to 10 years.

Because this program is not a direct lending program, you will need to apply for support through the lender that is underwriting your loan request. Lenders will need to email or mail the completed Cash Collateral Support borrower and lender applications, along with the supporting documents listed on the lender application, to the Colorado Housing and Finance Authority (CHFA) for review. If your lender is not familiar with Cash Collateral Support program, you can connect them with CHFA.

Program Manager

Colorado Housing and Finance Authority logo

Colorado Finance and Housing Authority
Community Development Lending Team

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