Small Business Loans in Colorado

In 1776, the United States declared its independence from Britain. A hundred years later, Colorado became the 38th state in 1876, thereby earning its official nickname as the “Centennial State.” Since that time, small businesses—with the help of loans from their lenders and other financial organizations—have been responsible for developing the Centennial State into an economic powerhouse.

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Types of Colorado Small Business Loans

The Centennial State has small businesses engaged in agriculture, tourism, technology, mining, and retail. The lenders in Colorado understand the characteristics of these industries and have experience in making all types of long-term and short-term loans to these businesses.

SBA loans

SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.

Line of credit

Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.

Term loan

Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.

Equipment finance

With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.

Accounts receivable financing

Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.

Colorado Small Business Loan Options

The Centennial State has a variety of lenders, banks, credit unions, and nonprofit institutions who are experienced in making loans to small businesses, especially those that add to the economic base and create jobs for the community.

Colorado Startup Loan Fund makes loans available to small businesses that are unable to obtain financing from traditional lenders.

Colorado Lending Source focuses on making loans to small businesses using the SBA 504 Loan program.

Colorado Enterprise Fund is a nonprofit organization that uses donated funds to finance small businesses that accelerate community growth.

Community Banks of Colorado serves customers across the state, offering multiple products including business term loans, business lines of credit, and SBA loans.

The Bank of Colorado is a family-owned and managed bank serving customers across the state. It offers equipment financing, lines of credit, and more to help Colorado small businesses.

Four simple steps to funding.

Tell us about your business.

Answer a few simple questions and complete the application in minutes.

Submit your application.

We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.

Compare offers.

Find the funding option with the terms that best fit your small business goals.

Get funded.

Once you accept, funding can hit your bank account in as little as 24 hours.

Speak with a Colorado representative

Denver
Leanne & Bill Airy
(720) 730-4058
bill.airy@lendiolocal.com
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FAQs

What other resources are available to Colorado small businesses?

In addition to receiving financial support from Colorado’s lenders, small businesses have other resources that can help them expand and develop their businesses.

SCORE is an organization made up of volunteer, retired executives who can provide free consulting advice, training, and guidance to small businesses. The Colorado Small Business Development Center has offices spread across the state that can help small business owners find loans, raise equity capital, and network with other businesses to expand their revenue base.

What Colorado small business grants are available?

Small businesses in Colorado can apply to several Grant programs to get free money instead of loans.

The Advanced Industries Early-stage Capital and Retention Grant Program helps small businesses with advanced technologies to create and develop their products in Colorado. The Colorado Office of Economic Development sponsors the Collaborative Infrastructure Grant program to provide funds for infrastructure development of innovative technology businesses.

Small business owners can also check the federal website, Grants.gov, to learn about any other grants that might be available for their industry and state.

What do I need to qualify for a loan in Colorado?

Your first step before applying for a loan is to decide on a business structure for your company. If you have only yourself or a few employees, a sole proprietorship may be acceptable in the beginning. In this case, you will need only to register your company’s name with the clerk of the county. If you prefer to incorporate or create a limited liability company (LLC), you’ll need to check for name availability with the Colorado Secretary of State and, if available, register with the state.

To make your lender feel comfortable when approving a loan for you, you want to assure them that you have carefully thought out how the funds will be used and have developed an ironclad plan showing how the loan will be repaid. This means presenting a carefully detailed need and justification for the loan and estimates for the cost assets being financed, such as quotes for machinery or equipment, cash flow projections, and a plan to pay back the loan, even if things don’t go as expected.

Which loan is right for my Colorado business?

The choice of which type of loan you need depends on the purpose of the loan. Long-term loans are used to finance the acquisition of fixed assets, such as equipment or real estate. Short-term loans are used to finance working capital and the company’s cash flow cycle. Quite often, short-term loans can be a line of credit or simple one-time loans with maturities of 30 or 60 days. It all depends on the ups and downs of your cash flow.

Online marketplaces, such as Lendio, have experienced financial advisors who can analyze your particular situation and structure a loan that fits your needs exactly.

How can a Colorado business loan help my business?

It’s rare for a company to have enough startup capital to begin operations and finance its growth. At some point, most small businesses need to borrow money to finance their expansion and development. Taking on a prudent amount of debt makes sense because the owner doesn’t have to give up any ownership to attract outside investors, and the cost of borrowing is cheaper than an investor’s required return on capital.

Borrowing money is the correct decision as long as the owner maintains a comfortable balance of debt to equity.

What is an SBA preferred lender?

An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.

What are the benefits of an SBA loan?

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.

Ready for funding?

See what you can qualify for on the Lendio Marketplace.

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