Program Summary

The CLIMBER (Colorado Loans to Increase Mainstreet Business Economic Recovery) Loan Fund offers working capital loans to help businesses impacted by the pandemic and economic challenges. All 64 counties are eligible, with a focus on distressed and underserved areas. Businesses with 1-99 employees can apply for loans from $10,000 to $500,000, featuring below-market interest rates and a one-year payment deferral option.

Determine if you are eligible for a CLIMBER fund here

Learn More About The CLIMBER Fund

  • Small Businesses

Businesses that were financially stable prior to COVID-19 but were negatively impacted by the pandemic with special consideration to small businesses that are underserved and/or rural businesses, are located in low- to moderate-income areas, and/or are located in economically distressed and underserved areas.

CLIMBER creates opportunities for lenders to provide loans to small businesses through the following unique resources to offset loan risk:

1. Credit Enhancement:

  • Provides a cash deposit equal to 10-15% of a registered loan as a pooled loan loss reserve, OR
  • Up to 20% cash deposit as a loan-specific collateral enhancement

2. Loan Participation:

  • Fund purchases 80% of the loan; the lender can charge interest on the retained share of the loan

3. Direct Lending (only available to non-bank lenders):

  • Provides lending capital for direct loans to small businesses
  • For-profit corporation, partnership, or association incorporated in Colorado; filed with the Colorado Secretary of State as a foreign entity authorized in Colorado; a nonprofit in Colorado; or a sole proprietorship owned by a Colorado resident with primary operations in Colorado
  • Up to 99 employees
  • 1 year of positive cash flow in the previous 5 years
  • A debt service coverage ratio of at least 1:1
  • Financially stable pre-pandemic but experienced financial hardship as a result of the pandemic
  • Loan amount: $10,000 – $500,000
  • Below market interest rates
  • Principal deferral for up to 6 months
  • Loans fund working capital

Small business owners should contact a participating lender to apply for a loan. There are statewide lenders available even if the business is not located in their area. However, there are lenders located in specific regions of the state so businesses can select a lender close to them. Each lender is independent and has its own application process, timeline, and underwriting discretion.

Find a participating lender here

CLIMBER Lender Meeting Preparation Checklist

Determine if you are eligible for a CLIMBER loan here

Contact your Small Business Development Center (SBDC) regional office to get started on the application

FAQ’s

Eligible loans are limited to working capital and eligible refinanced debt. Working capital includes:

  • Inventory, marketing, payroll, tenant improvements, operating and emergency maintenance;
  • Current property taxes, utilities, rent, and supplies;
  • Making regularly scheduled interest and principal payments on mortgages, loans, and other existing business debt;
  • Paying off existing debt that is due within 90 days; and
  • Paying off credit cards that were used to pay monthly operating expenses and that the business historically was able to pay off each month.

Borrowers must certify that funds will not be used for any Ineligible Uses:

  • To repay delinquent federal or state income taxes unless the borrower has a payment plan in place with the relevant taxing authority;
  • To repay taxes held in trust or escrow (e.g., payroll or sales taxes);
  • To reimburse funds owed to any owner, including any equity injection or injection of capital for the business continuance;
  • To purchase any portion of any ownership interest of any owner of the business
  • To refinance a loan except as allowed in Section 4
  • To enroll or refinance the unguaranteed portions of SBA-guaranteed or other federal loans; and
  • To pay severance to any employee.

Your loan payments will vary based on loan size and term. CLIMBER Loan Fund programs are meant to be more affordable, with below-market interest rates, prohibition of fees, and deferred payment options.

Contact your Small Business Development Center (SBDC) regional office to get started.

  • Each regional SBDC office will require that you complete an online intake form before you can schedule a no-cost consultation. You will be contacted by an SBDC representative to schedule a consultation within one business day of submitting your intake form.