Colorado Microloans range from $5,000 to $50,000 to help start-ups and entrepreneurial small businesses that are underserved by traditional debt markets. Preference is given to businesses in rural areas. These small, character-based loans have terms up to eight years. The maximum interest rate is the prime rate plus 2%.
The Colorado Economic Development Commission (EDC) created this program. Our Business Funding and Incentives division funds and administers it, and three nonprofit lenders make the loans.
The borrower needs to:
- have no more than 15 employees at the time the loan is made
- be a for-profit entity in Colorado with a majority of employees working in Colorado
- have a substantial possibility to become a viable business with the potential to create good jobs
- be documented by the lender as an “underserved small business”
- meet the lender’s underwriting standards
Businesses may contact one of three lenders to apply for a Colorado Microloan. Depending on your business's location, you should apply to a specific lender. Urban and front range businesses should reach out to Colorado Lending Source. Rural and non-front range businesses should reach out to Region 9 and First Southwest Community Fund.
Region 9 Economic Development District of Southwest Colorado
Laura Lewis Marchino, Executive Director