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
Emergency Small Business Loan Fund COVID-19
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.
For more information please contact: Heather Hobby
Phone: 719-423-4694
Email: hhobby@nwsoco.org
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 to the CHFA CCR Program
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
Our Impact This Year
-
2638
-
Attended Group & Online Classes
1634
-
New Homeowners
630
-
Dollars in Small Business Lending
4,250,000
-
Dollars Invested Into Communities
194,500,000