Energize Colorado Gap Fund: New Aid Fund for Small Businesses
Small businesses have been hard-hit by the COVID-19 pandemic. A new aid fund has been created to help bridge the gap between existing federal aid programs and the ongoing, specific needs of small businesses, sole proprietors, and non-profits. The Energize Colorado Gap Fund will provide more than $25M in small business loans and grants to boost small business enterprises that have experienced economic hardship due to COVID-19. Sole proprietors, businesses, and nonprofits with less than 25 full-time employees can apply for up to a $15,000 grant and a $20,000 loan for a possible combined total of $35,000 in financial assistance. The application will launch this month, and we want our creative community to be aware of this new resource! Here are some FAQs:
Q. Where is this funding coming from?
A: The Governor and the State Legislature have designated a $20 million dollar grant from the CARES Act to distribute alongside $5 million in loans from private donors and other state funds to help Colorado’s micro and small business owners.
Q. Who is eligible?
A. Small businesses, sole prioprietors (yes, that means individual artists and creatives!), and non-profits with less than 25 full time employees are eligible to apply. Priority will be given to Black, Indigenous, People of Color, Veteran-owned, Woman-owned or rural businesses, but eligibility is not restricted to these groups.
Q. How do the grants + loans work?
A. Grants will be given for up to $15,000 per entity, and are forgivable. Grant assistance will be rolled out first. Loans will be available for up to an additional $20,000, offered at low interest rates through local nonprofit lenders.
Q. How do I prove economic impact from COVID-19 on my business?
A. Businesses need to demonstrate and clearly articulate through writing the economic hardship their business is experiencing through the business’s choice of documents such as bank records, point of sale receipts, profit and loss statements, or other documents demonstrating economic harm. (For example, you could compare your business revenue from May-August 2019 to the same period in 2020 to demonstrate a loss.) Mentorship programs are available to assist applicants in this part of the process.
Q. Where, when, and how can I apply?
A. The application is not yet available, but should launch soon. To stay up to date, we recommend visiting the Gap Fund Website and subscribing for email updates.
We want our creative community to be informed about all forms of available aid to help small businesses! Visit the Gap Fund website to read more details, or watch the "Understanding the New Energize Colorado Gap Fund" webinar linked below: