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RLF Programs

San Luis Valley Revolving Loan Fund

The San Luis Valley Revolving Loan Fund provides gap-financing loans for business expansion, start-ups, and retentions.  Businesses must be able to provide permanent jobs in the assisted projects and fill a majority (60%) of the positions with low- or moderate-income persons*. 

Gap financing represents the balance of funds needed for a project after commitments from other sources of financing, including the owners, have been identified and exhausted.  This program is intended to help businesses access local lenders by sharing the risk and being flexible on collateral requirements.  Gap financing is not intended to compete with or replace local lenders.

In order to qualify, you must:

  • Be located in one of the 6 counties in the San Luis Valley
  • Be a for-profit business
  • Provide us with a complete business plan including personal financial statements
  • Create at least one full-time job for every $20,000 borrowed
  • Be willing to inject your own cash into the project
  • Be willing to personally guarantee the loan
  • Have a good credit history
  • Pay the $50 application fee

The loan terms are:

  • Minimum loan of $10,000 with a maximum of $250,000 (depends on availability of funds)
  • Leverage the RLF loan 2:1 with funds from other sources
  • Interest rate is determined during the approval process, but is very competitive
  • Loan term varies - maximum10 year
  • 2.0% origination fee; plus variable filing and closing costs
  • Proceeds can be used for land, buildings, equipment, working capital, inventory, and limited leasehold improvements; refinancing of existing debt is not allowed
  • Collateral is required on all loans.  Collateral can consist of fixed assets, inventory, accounts receivables, real estate, personal property, etc.

*See Income Guidelines

San Luis Valley Micro Enterprise Loan Fund

The San Luis Valley Micro Enterprise Loan Fund (MEP) was created to assist eligible low and moderate-income business owners with financing for business start-ups and expansions.  A micro enterprise business is defined as a “commercial enterprise with 5 or fewer employees, including the owners.”

In order to qualify, you must:

  • Be located in one of the 6 counties in the San Luis Valley
  • Be a for-profit business
  • Meet low or moderate family income criteria
  • Provide us with a complete business plan including personal financial statements
  • Your equity investment into the business should be at least 10%
  • Be willing to personally guarantee the loan
  • Have a good credit history
  • Pay the $50 application fee and $10 per applicant for credit report(s)
  • For an existing business, you cannot have sales of more than $1,000,000 or personal net worth of more than $250,000

The loan terms are:

  • Minimum loan of $2,500 and a maximum of $100,000
  • Interest rate is determined during the approval process, but is very competitive
  • Loan term varies – maximum 5 year
  • 2% origination fee which includes all filing and closing costs
  • Proceeds can be used for land, buildings, equipment, working capital, inventory, and limited leasehold improvements; refinancing is limited to 30% of existing debt
  • Collateral is required on all loans.  Collateral can consist of fixed assets, inventory, accounts receivable, real estate, personal property, etc.
  • Funds may not be used to buy out or reimburse the business for payments to an existing owner, or pay delinquent federal, state or local taxes including payroll taxes

*See Income Guidelines

Income Guidelines

2009 CDBG Low to Moderate Income Guidelines*
Family Low Income Moderate Income
1 person 19,750 31,550
2 persons 22,550 36,100
3 persons 25,400 40,600
4 persons 28,200 45,100
5 persons 30,450 48,700
6 persons 32,700 52,300
7 persons 34,950 55,900
8 persons 37,200 59,550
*Mineral County has slightly higher income guidelines


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