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Government Funding Programs
Largely through
the Small Business Administration [SBA], the US government offers programs
to financially assist small businesses. The most popular SBA programs
include a microloan and the 7[a] loan guarantee. Through the microloan
program, the SBA makes loan funds available to qualified nonprofit organizations,
which act as intermediary lenders. These organizations then use these
funds to make loans of up to $25,000 to new and existing small businesses.
Virtually any type of small business is eligible and loans funds may be
used for working capital, inventory, equipment, etc. The maximum term
of the loan is six years. Applicants must meet certain eligibility requirement
to be considered. Click here
for more information on this loan program.
The 7[a] guarantee program works a bit differently. With this loan, the
SBA guarantees 75% of the loan amount to the commercial bank which actually
lends you the funds. This option is appropriate for those who cannot secure
the funds through normal channels in the banking system. In exchange for
this service, the SBA charges a fee, usually 1%-2% of the loan principle.
Funds may be used for a wide range of capital expenditures, expansion,
refinancing, etc. Applicants must run profit-seeking businesses within
the size limits set by the SBA. Working capital loans have maturities
between five and ten years; fixed asset loans may have up to 25 year maturities.
For more information on this program, click here.
To learn about additional SBA small business loan programs, click here.
You can also contact the SBA directly:
US Small Business Administration
[303] 844-3984
721 19th St.
Denver, CO 80202
The Colorado Housing and Finance Authority also offers small business
loans. They have four main programs which are appropriate for applicants
in the Valley. The Direct Loan Program offers long-term financing to Colorado
businesses seeking money for real estate and/or manufacturing equipment.
Applicants must be established businesses able to put up 15% of the cost.
The Quality Agricultural Loan is limited to ranching, agricultural production,
and processing activities. Funds may be used for land and/or equipment.
The business owner must be able to put up 10%. And finally, the Rural
Development Loan Program targets profit or nonprofit organizations in
municipalities with under 25,000 people. Agricultural projects are ineligible.
Funds may be used for working capital, machinery, equipment, etc. The
owner must be able to put up 10%.
For more information on CHFA loan programs, click here.
Or, contact CHFA yourself:
Colorado Housing and Finance Authority
800-877-CHFA
1681 Blake Street
Denver, CO 80202
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