Business Funding Options
We are working to provide up-to-date grant and loan options available to small businesses. On this page you will find:
SBA PAYCHECK PROTECTION PROGRAM (PPP2) PROVISIONS
The Steamboat Springs Chamber recommends you speak to your banker as soon as possible about PPP2 details if you plan to apply. Review the Guide to Small Business COVID-19 Emergency Loans prepared by the U.S. Chamber of Commerce for more info.
Additional changes to open the PPP to more underserved small businesses:
- Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
- Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
- Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP
Who is eligible to apply
A business that has previously received PPP:
Businesses are eligible for a second PPP loan of up to $2 million, provided they have 300 or fewer employees, have used or will use the full amount of their first PPP loan, and experienced a revenue reduction of 25% or more in all or part of 2020 compared with all or part of 2019. This is calculated by comparing gross receipts in any 2020 quarter with an applicable quarter in 2019, or, in a provision added in the IFR, a borrower that was in operation for all four quarters of 2019 can submit copies of its annual tax forms that show a reduction in annual receipts of 25% or greater in 2020 compared with 2019.
New PPP loans also are available to first-time borrowers from the following groups:
- Businesses with 500 or fewer employees.
- Sole proprietors, independent contractors, and eligible self-employed individuals.
- Not-for-profits, including churches.
- Accommodation and food services operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 300 employees per physical location.
The legislation also allows borrowers that returned all or part of a previous PPP loan to reapply for the maximum amount available to them.
PPP loan terms
As with PPP1, the costs eligible for loan forgiveness in PPP2 include payroll, rent, covered mortgage interest, and utilities. PPP2 also makes the following potentially forgivable:
- Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines.
- Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations.
- Covered operating costs such as software and cloud computing services and accounting needs.
- To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either eight or 24 weeks — the same parameters PPP1 had when it stopped accepting applications in August.
- Borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year prior to the loan or the calendar year, the same as with PPP1
- Maximum loan amount $2 million
- Businesses starting with NAICS code 72 (accommodations and restaurants) can get up to 3.5 times their average monthly payroll costs, still subject to a $2 million maximum
YVCF COVID-19 RESPONSE FUND
A coalition of philanthropy, government, and community partners has joined together to create a COVID-19 Response Fund that will rapidly deploy resources to community-based organizations at the frontlines of the coronavirus outbreak in the Yampa Valley region. Operating grants will fund organizations that have deep roots in the community and strong experience working with residents without health insurance and/or access to sick days, people with limited English language proficiency, healthcare, and seasonal workers, people with chronic health conditions or who are mobility impaired, youth and our aging population, and more.
Alternative Funding Sources
The Colorado Office of Economic Development and International Trade has created a COVID-19 Small Business Alternative Funding resource. Explore the 100+ options available to Colorado small businesses. Resources are sorted by funding type, industry and county. We recommend downloading the document and sorting it by county first and industry second to find options applicable to your business. Remember to check back, as this sheet is updated daily.
SBA Economic Injury Disaster Loan
Please note the SBA’s Economic Injury Disaster Loan (EIDL) is currently unavailable.
The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with targeted, low-interest, working capital loans of up to $2 million in order to provide vital economic support and to help overcome the temporary loss of revenue they are experiencing. Business owners need to start tracking business losses as soon as possible on page 27 of the Business Recovery Guide — utilizing the Business Recovery Guide is very important.
- The SBA put together a presentation to explain the loan program and answer common application questions.
- The Colorado Office of Economic Development & International Trade has an Economic Injury Hotline (303-860-5881) to assist you in this process.
- The U.S. Chamber of Commerce Guide to SBA's Economic Injury Disaster Loans
We strongly recommend contacting your local bank to apply.
Energize Colorado Gap Fund
Please note the Energize Colorado Gap Fund is currently unavailable.
The Energize Colorado Gap Fund will provide more than $25 million in small business loans and grants to boost small businesses impacted by COVID-19. Sole proprietors, businesses and nonprofits with less than 25 full-time employees can apply for up to a $15,000 grant and a $20,000 loan for a possible combined total of $35,000 in financial assistance.
The fund opened applications on August 31. Applications and awards will be done in rounds to be able to provide assistance through December 2020. The process will not be first-come-first-serve, it will be a competitive process that will help those in need receive priority access to assistance.
To qualify, you must be either a small business/enterprise or nonprofit, have fewer than 25 employees, and be impacted by COVID-19. Priority will be given to the following applicants:
- Majority-owned by black, indigenous, people of color, veterans, or women
- In rural areas with a population of less than 50,000 people
- In the tourism sector
- With limited or no access to capital financing or other federal, state or local grants/loans