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- Weld/Larimer Business Fund Application Package
Weld/Larimer Business Loan Fund
Upstate Colorado Economic Development serves as the Administrator for the Weld/Larimer Business Loan Fund.
Program Summary
The Weld/Larimer Business Loan Fund ("BLF") was established to assist with the financial needs of companies expanding or locating in Weld or Larimer County. The Program was originally funded through the State of Colorado Community Development Block Grant Allocation from the US Department of Housing and Urban Development ("HUD"). Upstate Colorado Economic Development administers the BLF on behalf of the two counties.
Since the program was started in 1991, the BLF has loaned a total of $9.89 million to a total of 48 companies. These loans leveraged more than $84 million in capital investment and enabled those companies to create or retain 1,319 full-time and 845 part-time jobs.
The BLF can provide short-term financing for up to 45% of project costs, and may assume a second or third collateral position in order to leverage other lender involvement. The minimum loan amount is $25,000. Based on the financial needs of the applicant, the use of the borrowed funds and the borrower's credit history, typical terms will be for a term of 5-7 years and interest rates are based on the prime rate.
Program Priorities
Any business that meets the following criteria:
- Is a private, for-profit organization that Is located in, considering locating in, or expanding in Weld County or Larimer County, except for businesses within the cities of Greeley, Fort Collins or Loveland, (those are "entitlement" cities that receive their own HUD block grants for economic development
- Is considered a "primary" industry (i.e. manufacturing, agriculture, processing, distribution, etc.) that sells to markets larger than the local area. These businesses will be given priority, however, retail or service businesses are eligible.
- Can demonstrate that the project being funded is creating new jobs, retaining jobs, or that the principal beneficiaries of any jobs created/retained are low to moderate-income persons. For each $20,000 in BLF funds loaned to a business, one new job must be created or retained.
Loan/Guarantee Terms
- Short-term financing or loan guarantee for up to 45% of total project costs.
- Remaining project costs to be funded through banks, private investors or other loan programs (SBA guaranteed loans, etc.)
- Minimum loan amount - $25,000; maximum loan amount - $500,000
- Maximum loan term 10 years when real estate is involved. (may offer loans with up to 20 year amortization schedule with a balloon payment at end of 5, 7 or 10 years)
- Interest rates - negotiable based on the national prime rate
- Loan collateral - considered on a case-by-case basis. The BLF may assume a 2nd or 3rd position in order to leverage other lender involvement
- Personal guarantees or co-signatures from the business owners (20%+) required
- At least 10% of the project cost or market value must be invested by the borrower
- Origination/closing fee equal to 2% of the loan amount or guarantee
- No pre-payment penalties
- Non-refundable $100 loan application fee