About this programme
Cash Collateral Support is a Colorado credit-enhancement program that helps small and mid-sized businesses get loans they otherwise would not qualify for because they lack enough collateral. Rather than lending directly, the state places a cash deposit with the lender to serve as extra collateral for a business loan or credit facility.
The program is funded by OEDIT and the Colorado Economic Development Commission with $15.2 million from the federal Small Business Jobs Act of 2010, and it is managed day-to-day by the Colorado Housing and Finance Authority (CHFA), which is the main point of contact.
One of the program's specific goals is supporting employee ownership transitions and financing for employee-owned businesses; collateral caps can be increased for those transactions.
How it works
Lenders can apply for a cash deposit of up to 35% of the loan amount or $1,000,000, whichever is less, to support a business loan application. The maximum eligible loan size is $20 million.
CHFA's deposit is pledged as additional collateral for an initial term of three years; the lender can request annual extensions of up to 10 years for longer-term loans. Deposit terms can be extended further for transactions supporting employee ownership.
This is not a direct lending program: the borrower and the lender each complete their own part of the application, and the lender submits the full package with supporting documents to CHFA for review.
A Borrower Fee of 4% is collected by the lender at closing, covering the entire 3-year initial term; it can be deducted from loan proceeds or paid by the borrower.
Who can apply
The business borrower must have fewer than 750 employees at the time of financing. For-profit, nonprofit and manufacturing organizations are all eligible.
The lender must demonstrate a genuine collateral shortfall and a reasonable expectation that the borrower will repay the loan as agreed.
How to apply
- Work with a lender who is willing to use the Cash Collateral Support program; if your lender is unfamiliar with it, connect them with CHFA's Jaustin Vause, Commercial Loan Officer III.
- Use CHFA's Forms and Documents page to find the Cash Collateral Support Lender Application and the Cash Collateral Support Customer Application (also available in Spanish).
- The lender submits the full application package, including all supporting documents, to CHFA for review.
Documents you’ll typically need
- Cash Collateral Support Lender Application
- Cash Collateral Support Customer Application (English or Spanish)
Frequently asked
Does the state lend money directly to my business?
No. CHFA places a cash deposit with your lender as additional collateral; your lender is the one who issues the loan.
How much collateral support can I get?
Up to 35% of the loan amount or $1,000,000, whichever is less, on a loan of up to $20 million.
Who pays the program fee?
The lender collects a 4% Borrower Fee at closing, which covers the 3-year initial term; it can be deducted from loan proceeds or paid separately by the borrower.
What kind of businesses qualify?
For-profit, nonprofit and manufacturing organizations with fewer than 750 employees at the time of financing.
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All 10 programmes in Colorado →
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.