The State Small Business Credit Initiative (SSBCI) is distributing $10 billion in funding across all 50 states and territories in the United States, and the rollout is happening on a state-by-state basis. Fortunately for Colorado business owners, the Centennial State has now opened its SSBCI funding applications. Funding is given out on a first come, first served basis, so business owners must act quickly.
Colorado has secured $104.7M in SSBCI funding for its small businesses hurt by the pandemic. Colorado’s SSBCI programs make loans more accessible to business owners who may otherwise face barriers to funding.
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What kinds of funding can Colorado businesses receive?
Each state makes its own plan for distributing funds utilizing a mix of venture capital programs, equity programs, or loan programs.
Currently, Colorado is serving its small business owners through the loan programs outlined below. A venture capital program will open at a later date.
Loan Participation Program: This structure allows the state to provide direct lending to small businesses in partnership with lending companies.
Cash Collateral Support Program: This credit enhancement program uses small amounts of public resources to encourage private lenders to loan money to businesses. These loans are used when the business cannot meet the lender’s collateral requirements and are given as a cash deposit.
Which SSBCI programs are open now in Colorado?
Colorado has two open SSBCI programs: The CLIMBER (Colorado Loans to Increase Mainstreet Business Economic Recovery) Loan Fund and the Cash Collateral Support Program.
The CLIMBER Loan Fund: This fund provides up to $250M in working capital loans to Colorado small businesses that were negatively impacted by the pandemic. To distribute funding, the state will partner with participating lenders, accelerating the loan process to make loans more accessible. See below for details on lenders.
Loans will be distributed with the intent to promote small business recovery, save jobs, and help bolster the Colorado economy. Applicants from all industries may apply.
The Cash Collateral Support Program: This program targets small and medium-sized Colorado businesses that would otherwise not be able to access loans due to limited collateral. Businesses may apply for loans up to $10M.
What businesses are eligible for SSBCI funding?
Each program has slightly different eligibility requirements. Find out which program is best suited for your business:
Your business is eligible for the CLIMBER Loan Fund if:
- it has 5 to 99 employees
- it was financially stable before the pandemic and is now struggling
- it is a for-profit corporation, small business, nonprofit organization, or sole proprietorship in Colorado
Your business is eligible for the Cash Collateral Support Program if:
- it has fewer than 750 employees
- it is a for-profit, nonprofit, or manufacturing organization in Colorado
What can the funding be spent on?
SSBCI funding is being distributed in response to small businesses struggling as a result of the pandemic. It also aims to address problems of accessibility within entrepreneurship. Colorado’s mission is to save jobs, promote recovery, and stimulate the state’s economy. Therefore, funding must be spent on business purposes. This includes:
- Working capital
- Receivables
- Equipment and inventory
- Start-up costs
- Term loan financing
- Lines of credit
- Trade cycle financing
- Purchase or construction renovations of non-passive real estate
What CAN’T the funding be spent on?
- Passive real estate investment
- Speculative activities, gambling
- Pyramid sales
- Activities prohibited by Federal or State law
How to apply for SSBCI funding in Colorado:
To apply for SSBCI funding in Colorado – under either program – small business owners must first contact a participating lender. Small business owners must express their interest in utilizing SSBCI funding programs to their lenders.
Then, depending on which program is utilized, some documents and forms will need to be gathered and completed. Many of these forms cannot be filled out until you are working with a lender. The documentation process deserves thoughtful attention, so you’ll want to start soon to give yourself ample time to complete these forms.
The state has created a map to help you find participating lenders. Click on your county to find a nearby lender. You can also reach out to lenders outside of your immediate area, too. If you need help vetting participating lenders, our Client Success Managers are available to help.
📌 If you need assistance choosing a lender, we can help. Book a call or sign up now.
Common challenges in applying for SSBCI funding:
The most common challenge business owners face when applying for SSBCI funding in Colorado is choosing a lender to work with.
Your participating lender could be a bank, credit union, Community Development Financial Institution (CDFI), or even a nonprofit lender. Your neighborhood bank may be able to participate, too. This wide range of options helps ensure that you find the lender best aligned with your needs. However, it also means you’ll have to do quite a bit of research and assessment.
To help you conserve time and resources, our Client Success Managers have already learned the ins and outs of choosing a lender in Colorado. If you need support during this process, you can book a call for a personal consultation.
📌 Pro-tip: It’s important to note that due to the program’s novelty, not all lenders will be familiar with SSBCI’s Cash Collateral Support Program. If this is something you encounter, Client Success Managers can help you work with your lender to inform them about the program and connect them with the resources they will need to participate.
Applying for SSBCI funding is no small task, but if your business has been hurt by the pandemic it has the power to significantly alleviate some of the struggles your business has been facing. We are here to support you as you navigate this process.