About this programme
Colorado Credit Reserve is not a loan itself. It is a credit enhancement that makes it easier for a business that would normally get turned down for a bank loan to actually get one. The state and the borrower jointly fund a loan loss reserve account at the lender, which gives the lender extra security and makes it willing to approve loans it otherwise would not.
The Colorado Housing and Finance Authority (CHFA) manages the program day to day, while Colorado's Office of Economic Development and International Trade (OEDIT) provides the financial backing. Participating banks and credit unions still make every underwriting decision, set their own terms, and service the loan themselves; the reserve account just sits behind the loan as a cushion.
The program has been running for a while: in its first 10 years it backed more than $24 million in small business loans. In 2010, Colorado changed the rules to put more reserve funds behind loans to women- and minority-owned businesses, rural businesses, and businesses in enterprise zones.
How it works
To get a loan through this program, the borrower pays a fee of 1% of the loan principal. OEDIT matches that fee. Both the borrower's fee and the state's match go into the loan loss reserve account held at the participating lender.
The lender still makes the underwriting decision, sets the loan's terms, and services the loan directly, exactly as it would for any other business loan. The reserve account only comes into play if the loan defaults, giving the lender a cushion it would not otherwise have.
Who can apply
The borrower needs to be engaged in a trade or business primarily in Colorado, and the primary economic benefit of the loan needs to stay in Colorado.
Women- or minority-owned businesses, rural businesses, and businesses in enterprise zones may receive priority.
A business is not eligible if it falls into any of these categories: pyramid sales distribution plans; political or lobbying activities; private or commercial golf courses, country clubs, massage parlors, hot tub facilities, or suntan facilities; racetracks or other gambling facilities; sale of alcoholic beverages for off-premises consumption; governmental entities; businesses engaged in illegal activities under federal, state, or local law; businesses whose principal is incarcerated, on probation, on parole, or has been indicted for a felony or a crime of moral turpitude; businesses engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs; and businesses that present live performances of a sexual nature or derive more than 2% of gross revenue from products or services of a sexual nature.
How to apply
- Talk to a participating lender about registering a loan through the Colorado Credit Reserve program.
- Or visit the Colorado Housing and Finance Authority website for the current list of participating lenders.
Frequently asked
What can a Colorado Credit Reserve loan pay for?
Working capital, inventory, equipment, contract financing, lines of credit, and real estate projects for small businesses.
What can it not pay for?
It cannot fund refinancing of debt already on the lender's books (except a registered loan being renewed or extended), loans to a lender's own officers, directors, or principal shareholders (or their family members), housing finance, investment real estate, or loans already guaranteed by the SBA or USDA.
Who actually decides whether I get the loan?
The participating lender does. It makes the underwriting decision, sets the terms, and services the loan; the state's role is limited to co-funding the reserve account behind it.
Does the state give me the loan directly?
No. You apply and borrow through a participating lender, not through OEDIT or CHFA directly.
More funding in Colorado
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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.