DENVER, Colo., June 12 -- The Colorado Office of Economic Development and International Trade issued the following news:
The Colorado Office of Economic Development and International Trade (OEDIT) and Colorado Housing and Finance Authority (CHFA) announced today that Colorado has been awarded its third and final disbursement from the U.S. Treasury Department's State Small Business Credit Initiative (SSBCI).
Cris White, CHFA's executive director and CEO, said "With 98 businesses served and more than $72 million in private sector lending leveraged, the State Small Business Credit Initiative is doing exactly what was intended of the program - helping businesses access capital." White continued, "We are excited to receive the third disbursement of funding available to Colorado, so that we can continue deploying these resources to the business owners across the state."
Colorado was awarded a total of $17.2 million through the SSBCI program in October 2011, which it is receiving in three separate disbursements. Today, Colorado is receiving its third disbursement after successfully lending out $11.4 million, or 100 percent of its second disbursement. To date, the federal funds have generated $72 million in private sector financing to Colorado businesses.
"We are thrilled to have been awarded these funds available to help the backbone of our economy -small businesses," said Ken Lund, Executive Director of the Colorado Office of Economic Development and International Trade. "These funds help grow jobs and strengthen our economy, and ensure small businesses have access to the capital they need to thrive.
The SSBCI program was established on Sept. 27, 2010 when President Obama signed into law the Small Business Jobs Act of 2010. Through SSBCI, the U.S. Department of the Treasury awarded almost $1.5 billion nationwide to fund programs that support small businesses and small manufacturers. The program is expected to spur up to $15 billion in new private sector lending or investment in small companies by leveraging $10 in private capital for every dollar of federal support by the program's end.
Colorado's SSBCI funding is distributed through the Colorado Capital Access and Cash Collateral Support programs, administered by CHFA. The programs are designed to help businesses with 750 or fewer employees obtain loans from their local bank for working capital, inventory, real estate or equipment purchases, or lines of credit.
Cash Collateral Support is a credit enhancement program designed to help businesses get access to loans they might not otherwise qualify for due to collateral shortfalls. Lenders can apply for up to $1.25 million in cash collateral support to strengthen a borrower's collateral position. The maximum loan size supported is $5 million.
The Colorado Capital Access program established a loan loss reserve fund to help participating lenders offset any losses that occur with loans registered in the program. Colorado Capital Access will match the lender's contribution into their loan loss reserve fund, $1 for $1, up to a maximum of 7 percent of the loan amount, for each loan registered in the program. The maximum loan size is $750,000.
Businesses can obtain more information about Colorado Capital Access and Cash Collateral Support, including a complete list of Colorado Capital Access participating lenders, at www.chfainfo.com/getthedealdone.
A sample of Colorado companies that have benefited from SSBCI:
Integrated Design Solutions, Gunnison
Integrated Design Solutions manufactures sculptural concrete playground equipment. Located in Gunnison, Colorado, this eight year old company has completed projects across 20 different states. Owner, Andris Zobs, says the Cash Collateral Support program was one of the first steps that allowed his company to start a new phase of growth. Zobs learned about Cash Collateral Support through the local Small Business Development Center, which referred Zobs to participating lender - Gunnison Bank and Trust. The high quality customer service provided by Gunnison Bank and Trust throughout the Cash Collateral Support process resulted in Zobs moving his entire line of banking business to the institution.
Henschel's Meat Processing, Kirk
Trevor Henschel used the Cash Collateral Support program to help him acquire the financing needed to purchase and renovate the facility that is now home to Henschel's Meat Processing in Kirk, Colorado. Henschel's is an on-site meat processing plant located approximately 20 miles north of Stratton, Colorado. As a first time small business owner, Trevor appreciated that the Cash Collateral Support process was fast and easy to complete, leaving him more time to focus on other pressing business needs. Eastern Colorado Bank, Trevor's lender, referred him to the program.
Silo Adventure Center, Grand Junction
The Silo Adventure Center is a large, indoor trampoline park for kids of all ages in Grand Junction, Colorado. Owner, Joe White, used the Cash Collateral Support program to help him acquire and renovate the real estate for this new business. He learned about Cash Collateral Support through a business incubator website, and then worked with his lender Alpine Bank to make it a part of his financing package. White says the Cash Collateral Support program helped increase the amount of financing available to him. White noted that his business isn't the only one in the area that has benefited from the program, "Our location was somewhat depressed with several vacant properties. Now, that more businesses are moving into the area, traffic has increased for all of us. It has revitalized this community."
Intertech Medical, Denver
Noel Ginsberg, owner of Intertech Plastics, used the Cash Collateral Support program to obtain the financing needed to acquire Intertech Medical. The company is a large manufacturer of injection molded plastics, devices, and assemblies for the medical industry. Services include product design support, engineering and validation, molding, and assembly. Ginsberg says the acquisition brought his company's total employment to more than 200 employees. "We are fortunate to have a state that supports all types and sizes of businesses," said Ginsberg. "This program works well because of the partnership with banks." Ginsberg learned about the program through the Colorado Advanced Manufacturing Alliance. His lender was CoBiz Financial.
Mountain View Pet Lodge, Pueblo
Located in Pueblo West, Mountain View Pet Lodge provides boarding for dogs, cats, and other small creatures. Owner, Michelle Bravo will celebrate her businesses' seventh anniversary in August 2014. She used the Cash Collateral Support program to help purchase the property that she'd been leasing, resulting in lower monthly payments and increased cash flow that can now be redirected back into her business through equipment purchases and other improvements. "This program improved every aspect of my business. Without it, I don't know what the future might have brought," said Bravo. Bravo learned about the program from her lender, Canyon National Bank.
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