San Luis Valley Micro Enterprise Loan Fund

The San Luis Valley Micro Enterprise Loan Fund (MEP) was created to assist eligible low and moderate-income business owners with financing for business start-ups and expansions.  A micro enterprise business is a “commercial enterprise with five or fewer employees, including the owners.”

In order to qualify, you must:

  • Be located in one of the 6 counties in the San Luis Valley
  • Be a for-profit business
  • Meet low or moderate family income criteria
  • Provide us with a complete business plan including personal financial statements
  • Your equity investment into the business should be at least 10%
  • Be willing to personally guarantee the loan
  • Have a good credit history
  • Pay the $50 application fee and $20 per applicant for credit report(s)
  • For an existing business, you cannot have sales of more than $1,000,000 or personal net worth of more than $250,000

The loan terms are:

  • Minimum loan of $2,500 and a maximum of $100,000
  • Interest rate is determined during the approval process, but is very competitive
  • Loan term varies – maximum five years
  • Two percent origination fee which includes all filing and closing costs
  • Proceeds can be used for land, buildings, equipment, working capital, inventory, and limited leasehold improvements; refinancing is limited to 30 percent of existing debt
  • Collateral is required on all loans.  Collateral can consist of fixed assets, inventory, accounts receivable, real estate, personal property, etc.
  • Funds may not be used to buy out or reimburse the business for payments to an existing owner, or pay delinquent federal, state or local taxes including payroll taxes

Loan Applications and Information