Revolving Loan Fund – El Paso County, Colorado

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Areas Served: El Paso County

The El Paso County Revolving Loan Fund (RLF) is a federally-funded loan pool created by the US Department of Housing and Urban Development (HUD).

The funds, Community Development Block Grant (CDBG) monies, are provided by the State of Colorado and administered locally.

El Paso County, through its Office of Economic Development, contracts with the Pikes Peak Regional Development Corporation to administer the program for the County.

Goals The primary goals of the RLF are to create and retain jobs and to expand and diversify the economic base of El Paso County.

Highest priority will be given to manufacturing operations that create new investment in El Paso County.

To ensure job creation and retention, the business receiving the loan will be required to create or retain at least one job for every $20,000 in RLF assistance.

At least sixty percent (60%) of new jobs created must be filled by employees who, upon hiring, have a family income below El Paso County’s moderate income limits provided by HUD (family income may exceed the County’s moderate income limits after hiring).

Eligibility The RLF monies are available to private, for-profit businesses within unincorporated El Paso County and its incorporated cities and towns.

The City of Colorado Springs maintains a separate loan pool; therefore, businesses within the city limits of Colorado Springs are only eligible for monies from the City’s pool.

Contact the Small Business Development Center at (719) 272-7232 for more information.

Funds The RLF is primarily for financing fixed assets, including land, buildings, machinery, and equipment.

Working capital and inventory are also eligible uses of loan funds.

Minimum and maximum dollar amounts available for each loan are $10,000 and $100,000, respectively.

Priority will be given to projects that exhibit the greatest public benefit.

Generally, the RLF assistance may not exceed forty percent (40%) of the total project cost, and the borrower’s equity contribution will be at least ten percent (10%) of the total project coSt. A typical loan funded through the RLF will leverage additional investment for a project.

Terms With the RLF program, loan terms are flexible and are determined on a case-by-case basis depending on the life of the asset being financed.

Real estate loans will usually have a term ranging from seven to ten years; capital equipment loan terms usually range from three to five years; and working capital loan terms usually range from one to three years.

All loans are fully collateralized and personal guarantees are required of all borrowers.

Interest rates will be fixed at a rate that is below market rates at the time of closing.

Contact Information
El Paso County, Colorado
Address: 228 N. Cascade Ave.
City: Colorado Springs
State: Colorado

Website: http://adm.elpasoco.com/BudgetAdministration/EconomicDevelopment/Pages/RevolvingLoanFund.aspx

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