This program is intended to help businesses access private sector capital by sharing the risk and being flexible on collateral requirements. Gap financing is not intended to compete with or replace private sector financing. Some types of business may require more capital injection than others. Loan interest rate is prime rate at the time of approval. Loan term varies with a 10 year maximum.
Personal guarantee is required.
Provide access to capital for business expansion, retention, or startups to low and moderate income persons who cannot obtain financing through traditional sources. Encourage financial and economic self-sufficiency and promote job creation, retention and employment opportunities for low and moderate income persons who are residents of the San Luis Valley. Refinancing of existing debt is not allowed. Personal guarantee required. Review items for both loan programs include business and marketing plans, cost verification, industry comparison and ratio analysis, business rate of return, debt capability, credit standing, management, public benefits, compliance with federal, state, and local regulations, environmental clearance, and other factors.