Region 9’s Micro Enterprise Program assists qualifying small businesses with short-term (up to 5-years) capital needs of less than $100,000. Technical assistance grants of $5000 maximum (dependent on loan size) are also available in conjunction with a Micro-Enterprise Loan. Applicants who do not qualify, or with loan requests greater than $100,000 are encouraged to apply for Region 9’s Business Loan Fund program.
How Does The Program Work?
Application is made directly to Region 9. The applicant will meet with a loan officer to determine the appropriateness of the loan. A loan committee, comprised of business professionals representing the five county region, make the final decision.
Eligible business must be:
- Located in the five county region.
- Applying for loans of $100,000 or less.
- Business must have 5 or fewer employees at the time of application.
- The owner must qualify (see if you qualify) as low to moderate income or a low to moderate income job must be created per HUD guidelines.
The Micro Enterprise Program will focus on the character, credit, experience and reliability of the applicant. The primary considerations are:
- The likelihood that expected cash flow will be sufficient to pay obligations.
- The business has a good chance of achieving success with the requested financing.
- Willingness to pay debts, as indicated by a good credit history.
What Can I Use The Fund For?
Loan funds can be used for normal business uses such as working capital, equipment and inventory purchases. Loan funds may also be used to refinance debt if the debt is related to business activities.
What Can I Use Technical Assistance For?
Technical assistance grants can be used for most professional help including, accounting, marketing, legal, etc. The amount of technical assistance will be reviewed with the borrower and will depend on the facts and circumstances of the business. All technical assistance will require a dollar for dollar match by the applicant.
A loan origination fee 2% of loan amount will be charged at closing.
Interest Rates & Terms
The interest rates vary on a case by case basis, but generally will be one to two percent above the Wall Street Journal Prime and can be fixed or variable.
Collateral will be required but is not always a primary consideration for loan approval.
Below are the required loan application materials. Please feel free to call with any questions and to schedule an appointment. Please download the following attachments and submit all required materials by mail, or by stopping by our office.
Loan Application Checklist
Job Development Statement
Personal Financial Statement
Region 9 Economic Development District of Southwest Colorado, Inc.
Durango, Colorado 81303
(970) 247-9513 (fax)
For assistance with your application, business plan, or projection requirement, please contact the SW Colorado Small Business Development Center.