Colorado small-business loan program requires matching money from other sources

Loan managers must obtain commitments of at least one dollar from other sources for each state dollar before committing a batch of program money. Matched money supports loans to businesses chosen by the oversight board, including loans for everyday business expenses and equipment. Money contributed to the Colorado credit reserve is exempt from these matching and loan-use rules. Managers must return state money if they cannot secure the required match within the time allowed by their contract. The required match must be committed before the corresponding state money can be committed.

The state treasurer must transfer $5 million to the Colorado startup loan program fund. The money comes from the small business recovery and resiliency fund. The transfer is required on June 30, 2026. The transfer provision expires on July 1, 2027.

The loan program must fund businesses across Colorado and track how money reaches each county. Targeted support covers businesses in rural counties and businesses owned by women, minorities, or veterans. The program must maintain support targets in accordance with the referenced state law. The statewide funding requirement applies over the duration of the program.

The oversight board may allow borrowers facing hardship to delay principal and interest payments for up to one year. These terms apply to loans made with matched program money. A payment delay is allowed only for hardship, as determined by the oversight board. Unpaid interest is added to the loan balance. Money contributed to the Colorado credit reserve is exempt from these loan-use and loan-term requirements.