New and expanding businesses have a place to turn after being denied funding from traditional lenders.
The Business Loan Fund of Mesa County, a program of the Business Incubator Center, helps companies acquire loans for primary financing, and to fill the “gap” when a bank doesn’t cover an entire funding request.
A recent infusion of cash — $500,000 in Community Development Block Grant funding from Colorado and the county — will help the program reach more people.
“Our average loan size is $50,000,” Business Loan Fund Director Dean DiDario said. “So these funds will help us assist more businesses that can’t get loans from traditional sources. That’s what they’re earmarked for.”
Located at the Incubator campus, 2591 Legacy Way, the loan fund program’s purpose is to stimulate economic activity by providing greater access to capital for business expansion, retention and start-ups. The goal is to create and retain quality jobs and help diversify Mesa County, according to an Incubator news release.
“We don’t compete with banks,” DiDario said. “We help those who have been denied first by banks.”
Traditional lenders have a different mission and are bound by different restrictions than the Incubator program.
The Business Loan Fund generally has more flexibility than a traditional lender with regard to collateral, equity, credit history and other factors which place a business outside traditional loan programs.
“Our mission is economic development,” where some risk is inherent, DiDario said.
The additional funding provided by the Community Development Block Grant will be available for working capital, real estate purchases, capital expenditures, start-up expenses and equipment.
Business owners interested in applying for Business Loan Fund financing should contact the BLF of Mesa County at the Incubator at 970-242-4535. For more information and application forms, visit gjincubator.org.
The Incubator’s mission is to support the launch, growth, stabilization and long-term success of business enterprises. Since it was founded 24 years ago, the Incubator has helped launch more than 260 companies which have generated more than $156 million in revenue; provided funding for 313 businesses in the community; created or retained about 10,461 jobs; and invested more than $58.5 million in capital.