Colorado Lending Source, a nonprofit small business financing organization, has expanded its Colorado Main Street Loans program to serve the entire state.
The Denver-based organization started the Colorado Main Street Loan program earlier this year in Northeastern Colorado. But thanks to a partnership with the U.S. Department of Agriculture and the U.S. Small Business Administration, it has access to $1 million in revolving funds from the SBA to expand its Colorado Main Street Loans. The organization expects to make loans of up to $200,000 to qualifying small businesses across the state.
“Colorado Lending Source has always been about job creation and economic stimulation, which are more important now than ever,” said Mike O’Donnell, executive director of Colorado Lending Source. “The expansion of Colorado Main Street Loans is a much-needed opportunity for small businesses in Colorado to thrive and help our economy recover.”
Colorado Main Street Loans can be used for working capital needs -purchasing materials, supplies, furniture, fixtures or equipment; or buying, building or renovating commercial real estate.
Earlier this year, Colorado Main Street Loans of $20,000 to $35,000 each were available to small businesses located in Northeastern Colorado. With the additional money from the SBA, small businesses across the state have access up to $200,000 through the program.
In its 2010 Annual Report, the Colorado Lending Source reported that loan approvals were up 35 percent, reversing the trend of the two previous years. The loans represent about two-thirds of all SBA (504) loans in the state, according to the report.
Colorado Lending Source provides loans for commercial real estate and capital equipment purchasing. It was estimated that in 2010 about 2,400 jobs were created or retained as a result of the business expansions.
In August, SBA Deputy Administrator Marie Johns called the new funds for the Colorado Main Street Loan program an important tool to support businesses in underserved markets.
“Partnering with community leaders will increase points of access to capital for startups and businesses that have been disproportionally affected by the recession,” she said.
For more information about the Colorado Main Street Loans, including application information, go to www.ColoradoLendingSource.org.