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Gov. Polis Secures Federal Loan Assistance for Colorado’s Small Businesses

Colorado small businesses are now eligible to apply for a low-interest rate Economic Injury Disaster Loan (EIDL) through the U.S. Small Business Administration. Details on eligibility, how to apply and recommendations are included below.

The SBDC is here to help. Contact us for an appointment or call the SBA Disaster Assistance Customer Service Center at 800-659-2955.

ELIGIBLE ENTITIES:

  • 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)

INELIGIBLE ENTITIES:

  • Agricultural Enterprises: If the primary activity 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

LOAN APPROVAL CRITERIA:

  • Credit History: Applicants must have a credit history acceptable to SBA
  • Repayment: SBA must determine that the applicant’s 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

HOW MUCH YOU CAN BORROW:

  • 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

HOW THE FUNDS CAN BE USED:

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.

WHAT IS NEEDED TO APPLY:

  • 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 THAT MAY 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.)

HOW SOON WILL BUSINESSES RECEIVE MONEY?

  • Small businesses that submit complete loan packages could receive a yes/no decision and may receive a loan disbursement (the money) within several weeks, although it may take longer depending on demand
  • Incomplete information and verification of collateral will delay the approval process

HOW TO APPLY:

  • 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 disastercustomerservice@sba.gov.

RECOMMENDATIONS:

  • Include the specific disaster in your application – specifically reference “COVID-19” or Coronavirus
  • Apply online vs by mail
  • 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
"The small business support from Colorado SBDC is phenomenal. The consultants are of the highest quality, high integrity, trustworthy and incredibly helpful. The time savings and ability to take on more work is facilitated by having this kind of support available to the small business, particularly in the technology sector."
Ratiocinative Engineering Services LLC
Ratiocinative Engineering Services LLCHelen Petach
"Thank you for the SBDC help once again. I submitted our latest SBIR Phase I proposal to USDA yesterday. Brian Ormsby was invaluable with helping with the budget calculations, particularly the indirect rate calculations, and his style ("no nonsense, let’s get the numbers calculated and into the right places on the budget forms") was exactly what I needed."
Pisces Molecular
Pisces MolecularJohn Wood
"Through the SBDC, I received significant support in business development, marketing, financial projection, customer discovery, government compliance and many other business aspects. This support allowed me to have a strong start for my startup company, write solid proposals (including a commercialization plan for the SBIR grant) and be successively awarded SBIR Phase I and Phase II grants by USDA NIFA. But the most valuable part was, because of the SBDC and their consultants, I feel like I have a team of professionals ready to cover my back in the most important journey in my life - building a small business."
SunCatch Ltd
SunCatch LtdOlga Marinkina
"Thank you for organizing this great informative session on the PPP utilization part. I have been in conversation with Dan King and want you to know that you guys are doing a great job in helping small businesses like us. Thank you for all the work you guys do!"
Durgesh Singh
Durgesh SinghMagswitch Technology
"Thank you so much for your time! Besides the great information, your energy and support were priceless! It is so good to feel you are not alone in this journey."
Laila Marzall
Laila MarzallTSM Microwave
"As a new resident in rural Colorado I was truly at a loss about the tech community out here until I attended the SBDC TechSource event in Salida. I was truly impressed by the quality of the content at the event (compared to similar events in Chicago), was able to make some great connections within the local community, and was able to sign up for additional services as well. SBDC assisted us with market research which helped expedite our focus in Colorado and helped connect us with funding sources to expand. Beyond that they were quick to respond, a pleasure to work with, and went above and beyond with their services. I would absolutely recommend SBDC TechSource to another tech company, especially for companies outside of the front range that are looking to connect and grow rapidly."
Chris McLaughlin
Chris McLaughlinVital Command
"We have certainly worked with SBDC in the past and think Sharon and the rest of your office serve a critical function and put on excellent events to support the small business community."
Erica Dawson
Erica DawsonInDevR
"After almost two months of messing with Chase Bank, Susan got us the PPP loan filed and approved in about 8 hours. I hesitate to celebrate until money is in the bank, but it’s looking good and Susan was absolutely amazing. Of course, I’m wouldn't even be talking to Susan if you hadn't made the connection, so chalk up another small business success to SBDC. I see why you’re the best on the country. This loan was crucial to our success at a critical time in the world. All I can say is thank you."
Jeff Schott
Jeff SchottEarthvisionz
"I just wanted to send a quick note and let you know how helpful Brian Ormsby has been. He responded to my query about a week and answered a bunch of questions about the EIDL, and then we talked again to day about the PPP. I’ve asked several other resources about my PPP questions and he was the first person to answer them. I can’t stress enough how nice it is to be able to talk directly to someone who can answer questions about all of these programs. So thank you very much for making him available...!"
David W. PaulsonAccuer, Inc.
"Colorado SBDC Techsource assisted our start-up company in multiple ways: by providing us with a competitive analysis that we use in our Business Plan, providing advice on an SBIR proposal, and by providing some pro bono legal work, that helped with the current investment round. All of which were very helpful to a small business with limited resources."
Diana Hall
Diana HallActivArmor
"We still have steps to go but we are excited and confident that we will have a technology startup that works globally based in SW Colorado and we hope others will follow. We would not have made the progress we have without the advice and help of Colorado SBDC."
Michael Engleman
Michael EnglemanMission Sports
"When I was first beginning Sandbox Solar, I was referred to the SBDC in Greeley. Jenn and the team helped connect me with a lot of people including our current lawyers and accountants. Sandbox Solar has steadily grown since then into the leading solar installer in Northern Colorado. Our company moved into the Colorado State University Powerhouse in 2015. Through that relationship we have been involved in research including Agrivoltaics. Our team is beginning the commercialization phase of this new concept and business model. We turned to SBDC to assist with market research. This was incredibly beneficial to receive market reports that would be otherwise inaccessible. The research was presented to us in a way that has helped narrow our focus and commercialization plan. Our team is excited for the next steps of our new ventures and value the SBDC as a strong partner moving forward. I would highly recommend the SBDC to any company in any stage, because their team has the resources and connections to help find answers."
Ian Skor
Ian SkorSandbox Solar
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© 2022 Colorado SBDC TechSource. All Rights Reserved.

The Colorado Small Business Development Center Network is a partnership between the State of Colorado, Colorado Office of Economic Development and International Trade, the Small Business Administration (SBA), Colorado’s institutions of higher education, local economic development organizations and local chambers of commerce. Funded in part through a cooperative agreement with the U. S. Small Business Administration.

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