Susan Brown
The Boppy Company
Award winning baby pillow company.
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CITY OF LONGMONT LOAN POOL
GOALS OF THE PROGRAM
- Encourage business ownership and self-employment as a means of economic self-sufficiency for low and moderate income individuals.
- Bridge the gap for businesses which might eventually qualify for bank financing and prepare them for traditional bank relationships.
- Facilitate job creation and retention for low and moderate income residents of the community who are employees of small businesses that would access the fund.
- Foster diversity in the business community by encouraging business ownership among ethnic minorities, women and the disabled.
- Promote entrepreneurship and business innovation as a means of harnessing the creative potential of small businesses and investing in the economic success of the community.
- Encourage the development and growth of non-profit organizations who serve the community.
GENERAL BUSINESS ELIGIBILITY CRITERIA
- Businesses must have their primary operations in the City of Longmont.
- Businesses may not exceed $1 Million per year in revenue for the year immediately preceding the date of the loan.
- Self-employed individuals seeking a loan to start a business may not have an annual personal income (line 47 on the 1040 form) exceeding 80% of the HUD median income for Boulder County in the tax year preceding the date of the loan, and/or must employ people whose income is 80% or less of the HUD median income.
- Non-Profit Organizations revenue may not exceed $1 Million per year in the year immediately preceding the date of the loan.
- Business must have a Dun & Bradstreet number prior to closing the loan.
PURPOSE OF LOAN - Loans may be used for most business purposes including, but not limited to the following:
- Inventory purchases
- Star-up expenses - micro-enterprises only
- Equipment purchases
- Operations
- Tenant finish and property improvements
- Purchase of a business
LOAN SIZE - Loans may range up to a maximum of Fifty Thousand Dollars ($50,000).
UNDERWRITING PROCESS The following factors will be considered:
- Equity - Current typical minimums are 10% of the total funding needs. For start-ups, maximum participation is 50% of the total funding needs depending on the size and nature of the venture.
- Collateral - Requires personal and business assets pledged to repay the loan in the event that cash flow is not available for repayment.
- Credit - Credit history is evaluated on 3 levels: credit score, bankruptcy index and itemized evaluation.
- Cash flow and Profitability - Requires a business to have the ability to meet all of its expenses with revenue from its operations.
- Current on property and sales taxes.
APPLICATION FEE - $25.00 per borrower.
If you would like additional information on the City of Longmont Loan Program, please contact Lewis Hagler at lewis@coloradoenterprisefund.org or call him at (720) 473-4055.
