The Community Development Block Grant (CDBG) Business Loan helps businesses in rural areas by giving loans and loan guarantees. A business typically needs to create or retain one job for each $20,000 in loan funds. If your business has five or fewer employees, you may be exempt from that requirement through a micro enterprise loan.
Every year, the U.S. Department of Housing and Urban Development’s State CDBG program gives Colorado money for community and economic development. We receive about one-third of this money for economic development across the state. Specifically, we use this money to aid the state’s business loan funds.
The money goes into 14 regional loan funds to create and retain jobs in Colorado. There used to be 16 regional loan funds. One fund merged and another fund is no longer active.
The funds cover most of Colorado’s rural areas. Each of the 14 regional funds is led locally with its own dedicated regional business loan fund manager, local loan review committee, and local board of directors.
If your business has five or fewer employees, you can apply for a micro enterprise loan. If all owners of your business qualify as low- to moderate-income persons, the loan may not require you to create or retain jobs. Micro enterprise loans go up to $100,000. The loans are available at the regional business loan fund managers’ discretion.
You need to create one job for every $20,000 in funds received. You typically need to fill at least 51% of the jobs your business creates and/or retains with low- to moderate-income persons.If your business has five or fewer employees, you may be exempt from that requirement through a micro enterprise loan.
If your business is in one of these areas, it is not eligible for this program:
- Adams County (unincorporated areas and Bennett, Broomfield, Brighton, Federal Heights, Northglenn and Thornton)
- Arapahoe County (unincorporated areas and Bow Mar, Centennial, Cherry Hills Village, Columbine Valley, Deer Trail, Englewood, Glendale, Greenwood Village, Littleton, and Sheridan)
- Douglas County (unincorporated areas and Castle Rock, Larkspur, Lone Tree, and Parker)
- Jefferson County (unincorporated areas and Arvada, Edgewater, Golden, Lakewood, Mountain View, and Wheat Ridge)
- Colorado Springs
- Fort Collins
- Grand Junction
Borrowers may use these loans in an eligible rural area to:
- start a business
- expand a business
- stabilize an existing business
To apply for a Community Development Block Grant Business Loan, contact your regional business loan fund manager.
Your application will need to include:
- business plan
- pro forma projections
- historical and recent financial statements
- projected job creation/retention information
- additional information as directed by the local fund administrator