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FREQUENTLY
ASKED QUESTIONS...
1.
How do I apply for a loan?
2. What is your interest rate & loan terms?
3. How long does the loan process take?
4. What is your service area?
5. What if I have bad credit?
6. What are the collateral requirements?
7. Are you a government agency?
8. What are the fees and costs to get a loan?
9. What is Management Assistance?
10. Do you loan to startup businesses?
11. What can I use the money for?
1.
How do I apply for a loan?
To apply for a loan you can download the application from the website by clicking
here or call us at 303-860-0242. We will send you a loan application
package that includes the loan application and information that will help you
prepare a business plan and cash flow projections.
If you are interested in a child care loan to open or expand a child care home
or center, you can download the application from the website by clicking
here or call CEF at 303-860-0242 for an application. You can email
CEF by clicking here
for more information.
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2.
What is your interest rate & loan terms?
The interest rates at present range from 9% to 12%
Loan Amounts Range: $1,000 to $150,000
Loans may be amortized up to 7 years.
Smaller loan sizes are generally amortized over a shorter period
of time.
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3.
How long does the loan process take?
Under normal circumstances, loan applications take approximately 1-3 weeks to
process and close. You can normally expect to receive feedback on the status
of your application within one week. The applicant needs to submit all required
documents and information for this to happen. This is generally the area that
delays the loan decision process. More complex cases may take longer.
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4.
What is your service area?
The majority of the loans we have made are in the following Front
Range counties:
- Adams
- Arapahoe
- Boulder
- Broomfield
- Denver
- Douglas
- El Paso
- Jefferson
- Larimer
- Morgan
- Weld
Efforts are currently underway to secure the resources to expand our loan program
across the entire state. Businesses outside of the twelve county area listed
above are encouraged to call us at 303-860-0242 to speak to a loan officer.
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5.
What if I have bad credit?
It depends on what is meant by bad credit. A past bankruptcy will
not necessarily disqualify you from consideration for a loan if
the circumstances behind the bankruptcy were attributed to such
situations as death, divorce, and other extenuating circumstances
where an effort was made to rectify the situation.
The applicant must not have current, reoccurring late payments.
It is recommended that a detailed explanation accompany the application
to explain the report.
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6.
What are the collateral requirements?
The collateral requirements depend on many factors, one being loan
size requested. Our organization is more flexible than banks when
reviewing collateral. CEF always requires the personal guarantee
of the applicant(s). We also require that business assets
be held as collateral. Because of the personal guarantee,
a clean credit history can play a big part.
A $1,000 loan is very different from a $50,000 loan. The entire
loan application is reviewed to see where the strengths and weaknesses
lie. We can take a lien on a home, vehicles, and other personal
assets. Co-signers are always an option and are used quite often.
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7.
Are you a government agency?
Colorado Enterprise Fund is a private nonprofit organization. We
are certified by the U.S. Department of Treasury as a Community
Development Financial Institution. We are not a bank, but a community
small business lender. As a nonprofit organization, we receive funding
from a variety of federal, state, and local government sources.
We are a financial intermediary for the Small Business Administration's
Microloan Program.
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8.
What are the fees and costs to get a loan?
To apply, CEF charges $25 per applicant in order to process and
review the application. This helps cover the cost of reviewing the
application and ordering a credit report.
If you are approved for a loan, there will be a small closing fee,
direct costs to file documentation in order to secure collateral,
and other minor fees depending on the collateral secured.
A borrower is charged $100/year for Management Assistance. This
is built into the monthly loan payment for the additional technical
assistance services CEF offers. See next question for more
information on what that entails.
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9.
What is Management Assistance?
CEF provides Management Assistance to entrepreneurs who qualify
for loans under our program. Once an applicant becomes a borrower,
he/she will have further access to one-on-one consulting focusing
on cash flow management, marketing, profitability analysis, technology
issues, etc. CEF borrowers also have available to them the pro bono
services of several professional firms. Accountants, lawyers, investment
bankers, and public relations specialists donate their time to work
closely with our borrowers. This is a valuable benefit for those
who receive a loan through CEF. Click
here to go to the management assistance page.
Child care business owners have their own technical assistance track
that provides workshops geared towards the business side of child
care.
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10.
Do you loan to startup businesses?
We loan to both startup and existing businesses. Banks generally
don't lend to startups. Your business plan must be very strong in
order to demonstrate a market and your ability to implement the
plan. These types of businesses are higher risk and may require
additional collateral. Click here to
see our successful clients.
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11.
What can I use the money for?
Loan funds can be used for:
- equipment
and inventory
- working
capital
- marketing
expenses
- receivables
financing
- startup
costs
- many other
business uses
- Loan funds
may not be used for owner's salaries, personal expenses, delinquent
taxes, to refinance debt, or for the purchase of real estate.
Liquor stores, bars and certain other businesses are not eligible.
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