The San Luis Valley Revolving Loan Fund provides gap-financing loans for business expansion, start-ups, and retentions. Businesses must be able to provide permanent jobs in the assisted projects and fill a majority of the positions with low- or moderate-income persons*.
We provide gap financing, which represents the balance of funds needed for a project after commitments from other sources of financing, including the owners, have been identified and exhausted. This program is intended to help businesses access local lenders by sharing the risk and being flexible on collateral requirements. We remove some of the risk for local lenders, which, in many cases, allows them to make loans otherwise outside their lending criteria. WE are not a lender of last resort. Gap financing is not intended to compete with or replace local lenders.
In order to qualify, you must:
- Be located in one of the six counties in the San Luis Valley
- Be a for-profit business
- Provide a complete business plan including personal financial statements
- Create at least one full-time job for every $20,000 borrowed
- Be willing to inject your own cash into the project
- Be willing to personally guarantee the loan
- Have a good credit history
- Pay the $50 application fee
The loan terms are:
- Minimum loan of $10,000 with a maximum of $250,000 (depends on availability of funds)
- Leverage the RLF loan 2:1 with funds from other sources
- Interest rate is determined during the approval process, but is very competitive
- Loan term varies – maximum ten years
- One-and-a-half percent origination fee; plus variable filing and closing costs
- Proceeds can be used for land, buildings, equipment, working capital, inventory, and limited leasehold improvements. Refinancing of existing debt is not allowed
- Collateral is required on all loans. Collateral can consist of fixed assets, inventory, accounts receivables, real estate, personal property, etc.
*See Income Guidelines