USDA Main Street Loans – Colorado Lending Source

Colorado Lending Source
518 17th Street, Unit 180

Highlights • Small business financing specifically for rural Northeastern Colorado • Financing options not available from conventional lenders • Directly available through Colorado Lending Source via the USDA-Rural Development IRP Loan Fund (subject to USDA concurrence) • Total Loan Pool of $450,000 Loan Structure • Financing available for up to 75% of the total project cost Use of Funds • Can include, but is not limited to: working capital, building/land purchase or construction, business acquisition, debt refinancing, and purchase of inventory, furniture, fixtures and equipment. • Agricultural production is not eligible Eligibility Requirements • Small businesses, individuals, partnerships and LLCs, including eligible non profits • Must be located in one of the target counties in an area with a population of 25,000 or less (Weld, Morgan, Logan, Sedgwick, Phillips, Yuma, Washington,Eastern Elbert, Lincoln and Kit Carson) • At least 51% of the ownership of the entity must be a US citizen(s) or legal, permanent resident(s) • No more than 20% ownership by active government or military employee • SBA size standards apply: Business must have a net worth less than $15MM and a net profit of no more than $5MM (two year average after taxes) Loan Size • Financing available from $20,000-$35,000 Interest Rate • Rates will be fixed between Prime + 2.75% up to Prime + 5.75%, depending on a risk rated sliding scale Terms • Fully amortizing and based on: project purpose, borrower’s repayment ability and collateral (useful life, etc) Basic guidelines are as follows: • Real Estate – 15 year maximum term • Equipment and Fixtures – 10 year maximum term • Working Capital – 7-10 year maximum term