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NeighborWorks Southern Colorado Announces Small Business Emergency Microloan Program

Updated: Oct 22, 2020

NeighborWorks Southern Colorado has established a low to no income emergency loan fund for Small Businesses in Huerfano, Fremont, Custer, and Pueblo Counties. See their announcement below and to apply visit their website.


In light of the sweeping impact the COVID-19 pandemic is having on our small business community, Southern Colorado Community Lending (a subsidiary organization of NeighborWorks Southern Colorado) is responding swiftly to support our local, community businesses. The newly established Small Business Emergency Microloan Program now provides financing needed to strengthen small business enterprises in this time of acute need that have been affected by the COVID-19 outbreak.

General Eligibility


principal business owner(s) must have reasonable and responsible personal credit history and an acceptable explanation for any derogatory marks. Bankruptcies and debt write-offs must be at least 12 months old

Cash Flow

businesses must show that historical profits were sufficient to service the requested debt and have been impacted by the COVID-19 outbreak


primary business operation located in Pueblo, Fremont, Huerfano, and Custer counties will be given priority

Microloan Use of Funds

must be for reasonable and eligible working capital expenses

Microloan Requirement

job retention


evaluated on a case-by-case basis

Required Guarantors

all business owners who hold 20% or more ownership must guarantee the loan


a co-signer with reasonable credit and sufficient income to re-pay the loan can be included as a guarantor to mitigate weaknesses in the loan request

Application Fees

$25 for an individual, $50 co-borrower (waived for 90 days – July 1, 2020)

Important Documentation

  • Complete Loan Application

  • Business Tax Returns (1 year, if available)

  • Interim Business Financial Statement

  • Personal Financial Statement

  • Personal Tax Returns (1 year)

  • Bank Statements (3 months)

  • Sources and Uses of Funds

Microloan Terms

Loan Limits: $1,000 to $20,000

Interest Rate

  • Option 1: 0% for a term of 6 months

  • Option 2: 2% term of up to 2 years

Term: 6 months to 2 years

Loan Fee: 3%; 2% origination, 1% loan loss reserve

Eligible Uses: Working capital only

Eligible Borrowers

  • Option 1: micro-enterprises that are low-income or will retain low-income jobs

  • Option 2: small businesses that will retain low-income jobs

Repayment: Begins at 60 days

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