Finding the Best Business Loans in Colorado Springs for Your Business

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Business Loans Staff

Finding the Best Business Loans in Colorado Springs for Your Business

There are numerous business loans in Colorado Springs that entrepreneurs and small business owners can use to get their businesses up and running. Colorado offers various state funding options geared towards individuals who want to enhance their local community by encouraging economic prosperity and diversity.

The Office of Economic and International Trade provides the Colorado Small Business Development Center Network, offering different lenders as financial sources for small companies and entrepreneurs in Colorado.

Colorado Business Startup Loan Fund

The Colorado Startup Loan Fund provides loans to mission lenders who provide loans to Colorado entrepreneurs and small business owners who need capital to start up, or renovate their businesses and are not getting credit from traditional lenders. This is a revolving loan fund, which is used to support new entrepreneurs.

The Office of Economic Development and International Trade works with eight mission-oriented lenders to provide small loans under $150,000 to small business owners and entrepreneurs with Colorado Entrepreneurship Loan Fund grants. By offering below-average loans with favorable terms and interest rates, the program aims to provide loans to entrepreneurs who may not qualify or need larger loans.

These lenders were selected for their ability to work with entrepreneurs in rural areas who may not be native English speakers, have never taken out a loan, have no legacy required for financing, and have never received a loan before. The fund will focus on:

  • Provide financing options to existing businesses that cannot access traditional financing
  • provides financing opportunities for new businesses that are not accessible through traditional financing
  • Financing opportunities exist for existing businesses that have experienced financial loss or other impacts due to the COVID-19 pandemic and cannot access capital through traditional sources.
  • Increasing access to capital for minority communities

OEDIT implements these programs with non-profit lending institutions and community-based development institutions (CDFIs). The benefits of working with this mission-minded lender include:

  • Loans are usually offered if the lenders cannot provide the loan with the loan amount.
  • They often have more flexible payment options and credit modification options
  • Many lenders provide technical assistance and services to underserved communities and are more mission-driven than traditional lenders
  • Supporting economic development for communities and businesses without traditional funding sources

Qualifications

Applicants who are considering using this business loan in Colorado Springs for their small business must meet the following criteria:

  • For-profit entities located in Colorado with a majority of employees located within the state
  • <25 full-time employees when the loan application was made
  • <$2 million in gross annual revenue and projected <$2 million yearly revenue in the upcoming fiscal year
  • Cannot obtain traditional financing for their small business (i.e., bank loan)

In addition, applicants must meet the necessary business credit requirements of the Colorado Startup Loan qualifications. Although the exact credit score varies based on the lender, the typical range for a business credit score is between 640 and 700. The minimum credit requirement for a small business loan is 680.

Colorado Enterprise Fund

Another suitable loan for Colorado Springs business owners who need extra capital to finance their business is the Colorado Enterprise Fund. This type of loan is a non-profit small business lender focused on helping entrepreneurs and small business owners grow their companies and increase their impact in the local community.

Colorado Enterprise Fund offers different loan solutions, up to $1 million, that can help meet your unique needs. They provide various solutions that work with an individual's current credit requirements, interest rates, and financial backing.

Small Business Loans

The Colorado Enterprise Fund offers small business loans to owners who need a personalized financing option they may not be able to acquire through traditional methods. CEF offers SBA microloans with the following characteristics:

  • Ranging from $10k to $1 million
  • Offers fixed-rate and low-interest loans
  • Repayment plan of upwards of 10 years
  • Various purposes (ex: working capital, inventory, repairs, improvements, new property purchases, business purchases, one-time investment, etc)
  • Suitable for business owners with a lower credit score or limited collateral

Specialized Loan Programs

In addition to small business loans, CEF also offers specialized loan programs for uniquely-qualified businesses and owners:

  • Black Business Loan Fund — Black-owned businesses; starting at $10k; term of up to 10 years
  • Community Loan Funds — Starting at $10k; variable terms; fixed rates
  • Creative Industries — Artistry, culinary, and creative endeavors; starting at $10k; fixed rates; up to 10 years
  • Healthy Food Financing Initiative — Focuses on providing backing to business owners who can bring healthy and organic food to a ‘food desert’ area.
  • ITN Loan — Use Taxpayer Identification Number; starting at $10k; fixed rates; up to 10 years.

DreamSpring

DreamSpring is a non-profit community financial institution that provides loans to underserved communities with entrepreneurs wanting to boost their local area’s economic prosperity. For those who need business loans in Colorado Springs, DreamSpring offers small business funding and connects local business owners to form a reliable network.

Power Line of Credit

DreamSpring offers a Power Line of Credit ranging from $1,000 to $50,000 for entrepreneurs who want a flexible line of credit for various purposes. This specific line of credit is accessible for short-term business needs and offers immediate funding at a fixed interest rate.

With this personalized line of credit, you withdraw only what you need, so you know that you can repay it on the repayment plan. The Power Line of Credit helps you build your business’ credit and trustworthiness for potential loans in the future. Entrepreneurs using this financing option can access upwards of $50k on a 30-month revolving line.

Small Business Loan

Another smart business loan in Colorado Springs for new entrepreneurs and business owners is the small business loan, which can range upwards of $250k to start growing your business. Small business loans are customized to meet your needs, changing based on your repayment requirements, credit score, and interest rate preferences.

You can choose a loan between $1k and $250k with a fixed interest rate repayment term between 24-72 months. Plus, you can use this small business loan for various reasons to get your business off the ground, including supplies, inventory, vehicles, property, and repairs.

SBA Community Advantage 7a Loan

The last type of loan DreamSpring offers for small business owners in Colorado Springs is the SBA Community Advantage 7(a) loan, a great financing choice for small businesses with extensive capital requirements. These government-backed loans can provide more capital than typical financing options, offering upwards of $350k for entrepreneurs.

For small business owners in Colorado Springs looking to get their business up and running, this small business loan offers term rates of 5-10 years for entrepreneurs to use on business expansion, new property, extra inventory, technology, equipment, and working capital.

B:Side Fund

The last smart option for business owners in Colorado Springs who want to break into their unique niche is the B:Side Fund, a membership-based organization composed of lenders, small businesses, entrepreneurs, state-run groups, and community organizations.

Small Business Loans

B:Side Fund offers small business loans that are variable depending on an individual's needs, ranging from $20k to $5.5 million for different ideas, sizes, and requirements. Individuals can use their loans for anything from working capital to leasehold improvements, including everyday items like purchasing inventory or fixing furniture in a business.

B:Side Fund offers 25-year commercial state term loans and up to 10-year working capital loans, providing flexibility and long-term capital to help businesses establish themselves in the industry.

Compared to other business loans in Colorado Springs, B:Side Fund has numerous benefits:

  • Low interest rates compared to other online sources
  • Suitable for those who don’t qualify for traditional bank loans
  • Helps owners build business credit
  • Suitable for various business purposes
  • Does not require collateral

Direct Loan

Another option from B:Side Fund suitable for small business owners is the direct loan, which offers affordable capital for underserved companies that don't qualify for traditional financing options.

The main benefits of using a direct loan are that it helps businesses build credit and trustworthiness, offers low down-payment options, and provides long-term refinancing to avoid costly monthly payments as you are building your business from scratch.

B:Side Fund offers different direct loan programs that can meet your personalized requirements based on the following:

  • Loan Amount: $20k to $350k
  • Eligible Uses: Working capital, debt refinance, inventory, equipment, business acquisition
  • Interest Rate and Terms: Fixed or variable rate; 3-10 year terms
  • Collateral: Possible requirement of Blanket UCC Lien on Business Assets
  • Fee: 2-7.5% of loan amount

Find the Best Business Loans in Colorado Springs for Your Business

Do you need help choosing the best loan for your unique needs? Browsing different loan options, financial backing choices, and funding on our website and Colorado’s state plans can give you the right information to make a smart business decision for your new entrepreneurial endeavor.

Contact us at Business Loans today to get started planning the business of your dreams. You can browse our helpful guide to see what type of loans work best for your unique needs, ranging from online business loans to merchant cash advances for your Colorado Springs’ company.

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