Our partners at The Fax Partnership created the overview below.
The Fax Partnership’s mission is to strengthen and support East Colfax residents and small businesses while promoting equity and advocating for community-serving development. The Fax understands how important it is for our businesses to choose the right financial partner. This overview includes comprehensive information from four of our financial community lenders to help you choose the right program that suits your needs.
CEDS FINANCE
WHAT DOES THE FUND PROVIDE?
CEDS Finance provides attainable financing solutions and no-cost business support services to start, grow and strengthen small businesses. The mission of CEDS Finance is to support the American Dream of financial self-sufficiency by assisting refugees, immigrants, and others from underserved communities in Metro Denver with loans and murabahahs (Islamic-compliant financing) of up to $100,000.
Start-up and existing businesses are eligible for CEDS Finance loans. While it will review an applicant’s credit history as part of its process, CEDS Finance is a character-based lender that does not have a minimum credit score requirement. It also has a collateral-free loan option for financing needs of up to $20,000. Additionally, CEDS is also the only lender in Colorado that offers Islamic-compliant financing.
- Loan Size: Up to $100,000
- Term: 6 months-5 years generally (up to 10 years for loans above $50,000)
- Interest Rate: 5%-12%
HOW DOES IT WORK?
- Identify what you need for your small business and how much it will cost.
- Contact us to discuss your needs, our financing options, and the loan process.
- Get paired with an Investment Officer, submit a CEDS Finance application, and return all required documents.
- Get approved and help your business grow!
WHO IS ELIGIBLE?
- For-profit business
- Business based in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas or Jefferson Counties in the state of Colorado. Exceptions apply for murabahas.
- Business owners do not have to be US citizens or legal residents. They must be 18 or older.
- Business owner(s) shall provide owner’s equity — or their own cash — into the business. Recent and related business purchases may be considered.
- Business owner(s) shall pledge collateral of at least 50% of the value of the loan (such as business assets, personal vehicles, or other items of value) for financing of more than $20K.
CEDS Finance does not fund business acquisitions, non-profit organizations, or businesses in the following sectors: adult entertainment, gambling, guns, cannabis, or illegal activities.
HOW TO APPLY
- To begin the loan process, complete an inquiry form on our website: https://www.cedsfinance.org/med/#inquire
- To learn more, visit: https://www.cedsfinance.org
ENERGIZE COLORADO
WHAT DOES THE FUND PROVIDE?
The Energize Community Program (ECP) prepares small business owners to successfully apply for loan capital. ECP includes funding readiness workshops, low-interest Gap Fund loans up to $20k, and an accelerator program valued at $1,200. This round of Gap Fund loans is available to small businesses across 4 communities including those in East Colfax, Pueblo, Southwest Denver, and child care providers. The Funding Readiness Workshops kick off on April 5th and will run through May 12.
- Loan Size: Up to $20,000
- Term: Up to 36-month (3 years)
- Interest Rate: 2.5%
Application Dates: June – July 2022
HOW DOES IT WORK?
ECP is specifically for four communities in Colorado: East Colfax, Southwest Denver, Pueblo, and Child Care Providers.
Uses include:
- Payroll
- Rent/Lease
- Utilities
- Debt Consolidation
- Working Capital
- Equipment
- Inventory
- Capital Improvements
WHO IS ELIGIBLE?
This program is for businesses with fewer than 25 employees, operating for at least two years, and who operate in the four communities listed above.
The following communities are not eligible:
- Cannabis Businesses
- Gambling Businesses
- Businesses with more than 25 Employees
- Businesses Operating less than 2 years
HOW TO APPLY
- Register here: https://bit.ly/ecp_signup
- Learn more here: https://bit.ly/energize-community-program
- Email [email protected]
LISC
WHAT DOES THE FUND PROVIDE?
The Colorado BIPOC Micro Equity Fund supports the growth and resiliency of Black, Indigenous, and People Of Color (BIPOC) owned businesses through patient equity-like investments designed to feel like friends and family capital.
The Colorado BIPOC Micro Equity Fund provides growth capital to small businesses. Growth Capital is an innovative financing product that gives business owners the time they need to invest in and stabilize their companies. Unlike loan products, growth capital does not have fixed repayment terms; instead it’s designed as a long-term investment where businesses repay only when they are successful in growing their revenue.
LISC makes growth capital investments in your company ranging from $50,000 to a maximum of $250,000 with flexible repayment terms.
HOW DOES IT WORK?
Small businesses may use these funds to support growth and expansion plans such as:
- Plans to expand into new geographies
- Plans to diversify into new product lines, business lines, or business strategies
- Plans to enter complementary industries with high barriers to entry, better profit margins, and higher start-up costs
WHO IS ELIGIBLE?
The Colorado BIPOC Micro Equity Fund focuses on small businesses that are:
- Minority-owned businesses
- Earning annual revenues above $250,000 and below $3,000,000
- In operation for at least two years, with an ability to deploy capital toward business improvement and growth
- Based in Colorado
- Located in an economically disadvantaged community
HOW TO APPLY
- Go to our website: https://www.liscstrategicinvestments.org/co-bipoc-micro-equity-fund
- On the website, business owners can fill out a form expressing interest in the program. A LISC staffer will then reach out with further information.
- Email [email protected]
RMMFI
WHAT DOES THE FUND PROVIDE?
RMMFI invests in entrepreneurs’ personal and business development through a proven mix of classroom, coaching, capital, and community. In addition to their programming to explore, launch, or grow your business, RMMFI offers loans ranging from $500 to $75,000.
HOW DOES IT WORK?
RMMFI’s loans are character based, meaning they look beyond financial information and credit history to consider aspects like your growth as an entrepreneur and your commitment to continuous learning and improvement. RMMFI is committed to fair and equal opportunity lending and does not consider citizenship status or criminal background when making loan decisions.
WHO IS ELIGIBLE?
RMMFI is focused on serving individuals and communities that are often overlooked and underestimated by traditional business and financial services. In order to be eligible, your income must be 80% or less of the Area Median Income (AMI). More information about eligibility can be found at rmmfi.org/re-launch.
HOW TO APPLY
- The first step for all RMMFI entrepreneurs is completing the Dream Survey, which takes less than five minutes to fill out. The Dream Survey can be found at rmmfi.org/re-launch.
- Visit rmmfi.org or reach out to LaRae Martinez, RMMFI’s Outreach Manager and a fellow entrepreneur, at [email protected] or 720-253-9753.