Business Climate: Finance Opportunities

Access to capital is advantage in Morgan County with guaranteed loans through the USDA and a directive for Certified Capital companies to invest in rural areas. Most importantly, our locally-owned financial institutions and regional revolving loan fund are committed to economic development. Other finance programs available include the following:

Private Activity Bonds
Colorado has established a program to provide industry with tax exempt Private Activity Bonds to encourage private investment in creating and sustaining jobs, housing, and higher education. The program allocates bond issuance authority. Local governments sponsor bond issues but are not liable in the event of a default by the company.

Northeastern Colorado Revolving Loan Fund
The Northeastern Colorado Revolving Loan Fund provides investment capital to new and expanding businesses to create new employment and expand the economic base of the region. These funds may be used in conjunction with conventional loan sources, not to exceed $250,000 or 35% of the total project needs with a term not to exceed ten years. Call (970)848-3150.

Venture Capital
The state of Colorado has provided funding for two venture capital funding models:

• Certified Capital Companies: The state has six Certified Capital Companies that make loans and provide equity to Colorado businesses.
• Venture Capital Authority: The Venture Capital Authority provides seed- and early-stage capital to businesses.

Economic Development Commission
Business incentive funds are available for businesses that commit to meet certain job creation requirements (for businesses with significant state or regional impact).

Enterprise Zone
A variety of tax benefits are provided for businesses expanding or locating new business facilities in economically distressed areas of the state.

Job Training Grant Funds
Through the Colorado FIRST program (targeted to new jobs being created that need training) and the Existing Industry Program)targeted to existing jobs that need retraining for the business to remain competitive), the state has funds available to assist with employee training for specific businesses.

Business Loans
The state has 15 Business Loan Funds that make loans to businesses within their specific service area. The loan funds operate primarily in the rural areas of the state.

Infrastructure Assistance/Grants
The state has funds available to assist with constructing public infrastructure needed by a specific business(es) primarily in rural areas of the state.

Feasibility Study Grants
The state has funds available to assist with feasibility studies in primarily rural areas of the state.

Colorado Lending Source
Colorado Lending Source, a Certified Premier Lender, provides long-term, fixed asset loans through the SBA 504 Loan Program. Projects are typically structured with 50% from a lending institution, 40% from SBA and 10% equity from the business.

Colorado Housing & Finance Authority (CHFA)
CHFA's Business Finance Division offers small business loan programs that provide financing for working capital, machinery, equipment, owner-occupied real estate, and in some cases, refinancing of existing debt. This web site provides details of CHFA's finance programs.

• Guaranteed loans through the USDA
• Private Activity Bonds
• Northeastern Colorado Revolving Loan Fund
• Venture Capital
• Economic Development Commission
• Enterprise Zone
• Job Training Grant Fund
• Business Loans
• Colorado Lending Source

Locally-owned financial institutions

• 9 banks, $512 million total assets
• 2 savings & loans, $231 million total assets
• 2 credit unions, $65 million total assets