SBA DISASTER LOAN / OTHER LOAN / GRANT INFORMATION
SBA Disaster Loan Link / Information
- Applicants must meet the SBA requirements of a small business (500 employees or fewer)
- Businesses directly affected by COVID-19
- Businesses that offer services directly related to the businesses in the declaration
- Other businesses indirectly related the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)
- Agrigucltural Enterises: If the primary activy of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.
- Religious Organizations
- Charitable Organizations
- Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
- Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above.
- Cannabis Industry
- Credit History: Applicants must have a credit history acceptable to the SBA
- Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan.
- Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.
- Eligible entities may qualify for loans up to $2 million.
- The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.
- Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.
These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion. Funds cannot be used to pay down long-term debt.
- Completed SBA loan application (SBA Form 5).
- Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.
- Complete copies of the most recent Federal Income Tax Return.
- Schedule of Liabilities (SBA Form 2202).
- Personal Financial Statement (SBA Form 413).
- Income, balance sheet, and cash flow documents.
- Other Information may also be requested.
- Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing members, and affiliates (see filing requirements for more information)
- If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year
- A current year-to-date profit-and-loss statement
- Additional Filing Requirements (SBA Form 1368) providing monthly sales figures (This is especially important for Economic Injury Disaster Loans)
- Small businesses that submit complete loan packages could receive the money within three (3) weeks
- Incomplete information and verification of collateral will delay the approval process
- Include the specific disaster in your application – specifically reference “COVID-19” or Coronavirus
- Apply online vs by mail (Applying online is best)
- Write your password down; neither the system nor any personnel are able to retrieve it
- Save your work at every prompt
- Do not rush through the application. Check and recheck the filing requirements to ensure that all the needed information is submitted. The biggest reason for delays in processing is due to missing information.
- Make sure to complete all filing requirements before submitting the application and forms
- Be sure to use the same contact information (business name and the name of all owners) that you use on your federal tax returns. Double-check that they match
- If your tax returns reference other businesses that you own, you must also submit those tax returns in order to avoid processing delays
- If more funds are needed, applicants can submit supporting documents and a request for an increase. If fewer funds are needed, applicants can request a reduction in the loan amount.
- If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration
As you consider applying for the different federal funding sources available for Colorado businesses, the following information can help you make the best choices for your situation:
1) Federal funds carry program-specific restrictions and it’s important to know and protect your options. Review each program thoroughly. Your approval and acceptance of a loan from one federal program may cause you to be fully or partially ineligible for other sources of federal funding.
2) Different federal funding such as loans and grants from multiple agencies will roll out at different times, so it’s important to consider the timing of the funding source.
3) Federal economic disaster recovery loans are accessible right now for qualified businesses; however, no federal economic disaster recovery grants have been announced. Unfortunately, for businesses seeking immediate help, there is no way to predict which future federal tools – including grants – may be employed as COVID continues to impact the US economy. This can place businesses in the challenging position of weighing an immediate federal tool against the possibility of future programs that may or may not be offered, with requirements yet to be determined.
We are committed to sharing news of all new economic recovery resources (both state and federal) as they become available and are here to be your guide through this challenging time.
All Colorado counties are represented as being located in a certified disaster declaration area. Currently the site is struggling with the traffic load. We would encourage anyone who can to access the site after peak hours (7pm to 7am MST).
- Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela
- Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to:
U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155
- Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to firstname.lastname@example.org.
Borrowers can apply for both an SBA Economic Injury Disaster Loan and the Paycheck Protection Program loan. However, the Paycheck Protection Program loan funds and the Economic Injury Disaster Loan funds cannot be used for the same purpose. The Paycheck Protection Program loan must be used for payroll (minimum of 75% of the funds received) for it to be eligible for a forgivable loan and the remaining is used for different purposes. Borrowers who accept both loan funds should document the uses of the funds appropriately.
Coronavirus Aid, Relief, and Economic Security (CARES) Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
The administration soon will release more details including the list of lenders offering loans under the program. In the meantime, the U.S. Chamber of Commerce has issued this guide to help small businesses and self-employed individuals prepare to file for a loan.
PPP Loans / Colorado SBA Lenders
SBA 7(a) banks are going to handle the new Payroll Protection Plan (PPP) loans. If you have a banker, we recommend you clarify if they are a 7(a) lender, or have plans to become one. Click the link HERE for a list of Colorado 7(a) lenders.
For more information on the Paycheck Protection Program
An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Click HERE
Express Bridge Loan
Express Bridge Loan (EBL) Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
EBL loans can only be made by SBA Express Lenders that had a valid Supplemental Loan Guaranty Agreement SBA Express Program (SBA Form 2424) in effect as of the date of the applicable disaster.
Eligible small businesses are those that were located, as of the date of the applicable disaster, in the Primary Counties that have been Presidentially-declared as disaster areas, plus any Contiguous Counties. The small business must have been operational when the declared disaster commenced, and must meet all other 7(a) loan eligibility requirements.
Up to $25,000
Will be repaid in full or in part by proceeds from the EIDL loan
List of SBA Express Lenders in Colorado:
- Canvas CU
- Citywide Banks
- First Colorado National Bank
- First Southwest Bank
- FlatIrons Bank
- FMS Bank
- Mountain View Bank of Commerce
- NBH Bank
- Solera National Bank
- Stockmens Bank
- Sunflower Bank, National Association
- Timberline Bank
- Verus Bank of Commerce
Colorado’s mission-based lenders have been lending to traditionally-unbankable clients for over 30 years. They are open for business and lending, continuing to be a real resource for small business and entrepreneurs!
Fort Collins Small Business Relief and Recovery Loan Fund RECOVERY LOAN FUND
The City of Fort Collins approved the creation of a new Small Business Relief and Recovery Loan Fund, in cooperation with Colorado Lending Source, a Denver-based non-profit community lender. The City is re-purposing seed money previously provided in 2019 to Colorado Lending Source for its Main Street Loan program and is also redirecting the City’s unspent Cluster Program funds to launch the Fort Collins Small Business Relief and Recovery Loan Fund. Total available funds, eligible businesses and use of funds are still to be determined.
The Community Foundation of Northern Colorado and United Way of Larimer County announce the Northern Colorado COVID-19 Response Fund to aid in response and relief among northern Colorado nonprofit agencies. The collaborative funding and leadership will support vital organizations while providing bandwidth and resources to nonprofit partners addressing today’s greatest need. Visit here for more information.
Your generosity will help families and people in need access critical information and services like food, shelter, and more through our United Way network. 95% of your donation will provide relief to those left vulnerable by the pandemic.
El Pomar Foundation announced today the establishment of the Colorado Assistance Fund (CAF). CAF is a $1 million fund offering immediate aid to nonprofit organizations supporting Colorado communities, organizations and individuals affected by the recent outbreak of COVID-19.
Grants from the fund will be distributed to 501(c)(3) nonprofit organizations or government entities supporting access to appropriate healthcare and meeting basic human needs such as food access, rent and utilities assistance, and emergency services for individuals and communities impacted by the virus.
“We are closely monitoring the COVID-19 outbreak and its impact particularly in the state of Colorado, and we hope the Colorado Assistance Fund will provide some relief to those individuals and
organizations most affected,” said Kyle Hybl, President & CEO of El Pomar Foundation. “Since 1937, El Pomar’s mission has been to enhance and promote the well-being of the people of Colorado, and the Trustees’ establishment of this fund in this time of need is emblematic of that commitment.”
El Pomar staff will determine need through three primary avenues. In addition to coordinating with county public health departments and nonprofit organizations around the state, the Foundation will rely on input from several advisory councils of local leaders to identify the specific needs within Colorado’s rural communities. These regional councils are part of El Pomar’s Regional Partnerships program and regularly provide grant recommendations to El Pomar Trustees.
“We feel very fortunate to have a strong network of advisers, nonprofit organizations and public health organizations throughout the state,” Hybl said. “Their expertise and local knowledge will enable us to get these funds in the hands of those people and organizations which will make an immediate difference in
communities across Colorado.”
This is the sixth time El Pomar Foundation has dedicated a Colorado Assistance Fund. The five previous funds were established during and in the immediate aftermath of the 2008 financial crisis and distributed more than $5 million between 2008 and 2012. El Pomar Foundation is one of the largest and oldest private foundations in Colorado. El Pomar contributes approximately $22 million annually through grants and community stewardship programs to support Colorado nonprofit organizations involved in health, human services, education, arts and humanities, and civic and community initiatives. Spencer and Julie Penrose founded El Pomar in 1937.
To learn more about El Pomar Foundation please go to www.elpomar.org