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
Credit
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
Location
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
Collateral
evaluated on a case-by-case basis
Required Guarantors
all business owners who hold 20% or more ownership must guarantee the loan
Co-Signer
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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