The Pueblo County Revolving Loan Fund (RLF) was established to assist with the financial needs of companies expanding or locating to the rural areas of Pueblo County. The program is funded through the State of Colorado Community Development Block Grant Allocation from the US Department of Housing and Urban Development (HUD). Pueblo County Community Development Corporation (PCCDC) administers the account on behalf of the County

The RLF can provide short-term financing for private, for-profit businesses. Based on the financial needs of the applicant, the use of the borrowed funds and borrower’s credit history, typical terms will be for 5-7 years and interest rates will be based on the prime rate. The minimum loan is $10,000.

There are two loan types in this program: the Direct Loan and the Revolved Loan. The Direct Loan is for a business that can meet the federal guidelines for receiving the federal funds directly. A Direct Loan is given the highest priority. If a business can not meet all the requirements of the Direct Loan program, there may be funds available in the revolved fund. Revolved loans do not require federal monitoring and the local organization has more flexibility in interpreting the goals of the program.

Direct Loan Requirements

• The business must be located in rural Pueblo County (outside city of Pueblo limits).
• Can demonstrate that project being funded is creating new jobs or retaining jobs. For each $20,000 loaned, one new job must be created or retained.
• 60% of total funding package needs to come from other sources.
• Maximum loan term of ten years.
• Must provide collateral, however the RLF may consider a 2nd or 3rd position in order to leverage other lender involvement.
• Personal guarantees or co-signatures from the borrowers are generally required.
• Maximum loan is $250,000.

Revolved Loan Requirements

• Business located within Pueblo County (including within the City of Pueblo).
• Can demonstrate that the project being funded is creating new jobs or retaining jobs.
• Maximum loan term of ten years.
• Collateral in some form is generally required.
• Personal guarantees or co-signatures from the borrowers are generally required.
• Maximum loan is generally $100,000, but may consider a higher amount.

Application Instructions

You will need to complete an application. You will also need to provide a business plan, cash flow projections, biographical sketch’s of each owner, previous years financial statements for the business (if any) and personal tax returns. Normally, you will also need a letter of commitment from other financing sources.

Applicants will present to the PCCDC board who will make a decision on the loan. The PCCDC board meets monthly on the 3rd Wednesday of each month. Application cut off is the 2nd Monday of each month.

Direct loans need final approval from the Colorado Office of Economic Development and International Trade.