Frequently Asked Questions El Paso County Business Loan Fund

PURPOSE

Q. Why was the Business Loan Fund Program Created?
A. PPRDC and El Paso County identified a need for capital resources for smaller emerging businesses in unincorporated El Paso County and its incorporated smaller cities and towns. These smaller emerging businesses find it difficult to expand due to a lack of access to capital markets. The program is intended to fill the financing gap for undeserved business owners.

Q. What are the goals of the El Paso County Business Loan Fund Program?
A.The primary goal of the El Paso County Business Loan Fund Program is to provide smaller emerging businesses with expansion capital.

 

SOURCE OF PROGRAM FUNDING

Q. Where do the loan funds for the El Paso County Business Loan Fund Program come from?
A.The El Paso County Business Loan Fund Program was originally funded by Federal dollars directed from the US Department of Housing and Urban Development. The funds, Community Development Block Grant (CDBG) monies, are administered locally. El Paso County, through its Office of Economic Development and Public Finance, contracts with Pikes Peak Regional Development Corporation to administer the Business Loan Fund (RLF) Program for the County. The RLF is currently funded by payments collected from loans previously granted.

Q. What role does PPRDC play in accessing loan funds under the El Paso County Business Loan Fund Program?
A. PPRDC’s role in accessing loan funds under the El Paso County Business Loan Fund Program is as noted below:
PPRDC staff reviews the loan request and performs the necessary eligibility and credit analysis necessary to determine whether or not the loan is an acceptable credit risk. PPRDC submits the loan request to its Board of Directors for approval. PPRDC closes the loan in accordance with the El Paso County guidelines. PPRDC services the loan.
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ELIGIBILITY

Q. What are the basic requirements for the El Paso County Business Loan Fund Program?
A. The primary eligibility requirement under the El Paso County Business Loan Fund Program is that the business be located within unincorporated El Paso County, its incorporated smaller cities and towns or within a designated Enterprise Zone.

Q.What types of businesses are eligible for financing under the El Paso County Business Loan Fund Program?
A. Highest priority will be given to those businesses considered as “primary” employers. Primary employers are those who produce or manufacture a product. Job creation is also a criteria that is given priority.

Q. What can the El Paso County Business Loan Fund be used for?
A. The El Paso County Business Loan Fund Program can be used for: Business Acquisition. Real Estate. Machinery and equipment. Inventory. Working capital.

Q. What are some of the other eligibility criteria?
A. The applicant must be a creditworthy for-profit business. Loans must be sound as to reasonably assure repayment. PPRDC will consider:
Character, reputation, and credit history of the applicant, its affiliates, and guarantors. Experience and depth of management. Market demand for the borrower’s product or service. Past earnings, projected cash flow, and future prospects. Ability to repay the loan with earnings from the business. Sufficiency of invested equity to operate the business on a sound financial basis. Potential for long-term success. Nature and value of collateral (although collateral will not be the sole reason for denial of a loan request). The effect any affiliates may have on the small business applicant.
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FEES AND VARIOUS OTHER DISCLOSURES

Q. What are the fees associated with the El Paso County Business Loan Fund Program?
A. The loan origination fee is 2% of the loan amount.

Q. What is the interest rate on loans funded under the El Paso County Business Loan Fund Program?
A. The interest rate on RLF loans is based on current market conditions and fixed for the term of the loan.<

Q. Are there pre-payment penalties assessed for early retirement of loans funded under the El Paso County Business Loan Fund Program?
A. No, there are no pre-payment penalties on BLF loans that are retired early.
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THE APPLICATION & CHECKLIST

Q. What are the requirements for applying for an El Paso County RLF loan through PPRDC?
A. Requirements include submission of an application, which can be secured from this website or PPRDC’s office by request. The application comes with a checklist of items to submit.

Q. How can I get a copy of the Application and Checklist for a loan under the El Paso County Business Loan Fund Program?
A. The Application Checklist and related forms can be obtained by mail at 322 S. Cascade Avenue, Colorado Springs, CO 80903; by phone at (719) 471-2044 or going to the Application Packet download page.

Q. If I have questions, who do I speak with and how do I contact them?
A. If you have questions while working through the Application Checklist, you can either call (719) 471-2044 or you can e-mail your questions through the Internet Home Page at pprdc.com or to christine@pprdc.com.
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THE APPROVAL PROCESS

Q. How long before I know whether or not I’ve met all of the application requirements for a loan under the El Paso County BusinessLoan Fund Program?
A. Within three business days of submission, you will be advised by letter whether or not your application has been accepted for processing. If your application is incomplete, it will be returned, along with a description of deficiencies.

Q. How long before I know whether or not my loan has been approved?
A. Once your application has been accepted for processing, PPRDC will review the application and submit it to its Board of Directors for final approval. PPRDC’s board meets once each month.

Q. If my application for a loan under the El Paso County Business Loan Fund Program is approved, what happens next?
A. If your loan request is approved, PPRDC will notify you of those items necessary to close your loan by letter.

Q. What if I disagree with the decision?
A. If you disagree with our decision, you may appeal by letter to PPRDC’s Executive Director. The Executive Director will present your appeal to PPRDC’s Board of Directors, and will notify you of the outcome by letter.
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