This document provides information about acquiring capital for small business growth through Colorado Lending Source. It discusses Colorado Lending Source's mission of fostering economic growth in Colorado by assisting with SBA and USDA loan programs. It outlines the 5 C's of credit that are considered in applications and the types of documentation required. It also describes the SBA 7(a) and 504 loan programs as well as other options like microloans and the Main Street loan program. Colorado Lending Source aims to inject capital into the state's economy by helping small businesses.

1. Acquiring Capital for
Small Business Growth
COLORADO LENDING
SOURCE
APRIL 25, 2012

2. Colorado Lending Source
OUR MISSION IS TO FOSTER THE ECONOMIC GROWTH
OF DIVERSE SMALL BUSINESS WITHIN THE STATE OF
COLORADO
• In our history we have helped create or preserve approximately
17,000 jobs within Colorado
• Injected $822 Million into the state’s economy
• We have achieved this by assisting with SBA and USDA loan
programs

3. The 5 C’s of Credit
 Capacity – amount needed to be borrowed vs. ability to
pay back
 Capital – owner’s equity
 Collateral – quality of assets pledged
 Credit – credit score matters
 Character – integrity of the borrowers

4. What you will need to apply:
 Business financials – Past year’s tax returns and current
statements
 Personal Financials – Personal tax returns and personal
financial statement
 Business Plan – Overview of business with pertinent facts.
Projections with detailed assumptions is vital
 Proposed Budget - Costs estimates and how the funds will be
used by your business
 Credit – know your score and be able to speak to any derogatory
items.

5. Types of SBA Loans
Guaranteed / 7(a) 504 Loans Micro-Loans
Loans

6. The SBA 7(a) and 504 Loans
7(a) 504
 Can be used for any business  Proceeds can be used to purchase
purpose; working capital, real estate or long term (10 years)
inventory, equipment, tenant equipment
finish, and real estate  This is a loan from a bank and a
 Many variations on the 7(a) loan group like Colorado Lending
program depending on guarantor Source
and business need  The loan is split with the bank in
 This is loan from a bank 1st position and Colorado Lending
guaranteed by the SBA Source in 2nd position
 Terms and conditions vary based  Equity from business is
on use of proceeds and the type of determined by length of time in
program used operation and type of facility
purchased. Equity ranges from
10-20%

7. Other Loan Options
Micro Lenders Main Street Loan
 Colorado has several micro Program
lenders with loans for small  Loan from Colorado Lending
businesses; Colorado Enterprise Source for businesses that have
Fund, Accion and Rocky struggled to obtain financing
Mountain Micro-finance Institute  Wide variety of business needs can
 Loans can range from $500- be met with this program
$250,000  Targeting loan requests from
 Requirements for these loans $100,000-$200,000
vary from the different  Business must have been declined
institutions by other lending institution

8. Questions?
Mike O’Donnell
Executive Director
Mike@clsloans.org
World Headquarters
518 17th Street, Suite 1800
Denver, CO 80202