New Micro Loan Program gives Northwest Loan Fund more lending options
The Colorado Office of Economic Development and International Trade (COEDIT) has announced a new microloan program that is now available for start-ups and entrepreneurs. This is a special initiative to provide loans to small businesses that are under-served by traditional debt markets.
The program is designed to infuse capital into markets that need it most and help businesses scale and create jobs. Local lenders will administer the loans since they are embedded in the communities and know the businesses best. Eligible businesses must be a for-profit entity that meets the following conditions:
- The recipient business can have no more than 15 employees at the time the loan is made.
- The recipient business must be documented by the lender as an “underserved small business.”
- The recipient business must be located in Colorado with a majority of employees working in Colorado.
- In the judgment of the lender, the recipient business has a substantial possibility to become a long-term viable business in Colorado that can grow to employ more than its owners.
- The recipient business does not meet underwriting standards for banks and other more traditional lenders.
These loans can range between $5,000 and $50,000, with a maximum interest rate of 2% plus the prime rate the day the loan is made. The loan term may be up to 8 years. The Northwest Load Fund provided their first loan under this new program to Coulter Lake Guest Ranch to improve solar and hydro power systems and to install a water purification system. For more information about the program, contact Anita Cameron, Director of Business Lending, via email: Anita@northwestloanfund.org or https://choosecolorado.com/colorado-microloans/
Would a Loan help your Business? Contact the Northwest Loan Fund
The Northwest Loan Fund (NLF) can guide you to the right combination of funding. Contact Anita Cameron, Director of Business Lending, if you: want to expand, acquire, or start a business; are looking for favorable rates; just have questions. We are particularly interested new or growing businesses. Generally loan amounts are between $5,000 and $500,000. Rates and fees are very favorable. Contact Anita Cameron, 970.468.0295 x119 for more information. Since May 2014, the Northwest Loan Fund: Made 26 Loans for a total of $1.7 million; Helped create 71 jobs.
The most recent client of the Northwest Loan Fund is the Capital Creek Brewery in Basalt.
Capital Creek Brewery is aunique brewery and restaurant in the perfectly located Willits Town Center in Basalt. The owner’s (Bill Johnson) vision for this new establishment was to specialize in brewing beer for in-house consumption and to serve traditional brew-pub food along with more unique offerings designed to tease the palate of real foodies.
Bill determined he would need additional funding to get the brew pub started to obtain a combination of construction, equipment, and working capital financing to bring his vision to fruition.