Small Business Resources for COVID-19
The most up-to-date information and resources for Colorado small businesses responding to the current health crisis can be found here.
Businesses seeking technical assistance or consulting regarding how to prepare and/or recover during an economic disruption should contact the Grand Junction SBDC by registering for free business coaching.
Funding Sources (Loans & Grants)
As you consider applying for the different federal funding sources available for Colorado businesses, the following information can help you make the best choices for your situation:
- Federal funds carry program-specific restrictions and it’s important to know and protect your options. Review each program thoroughly. Your approval and acceptance of a loan from one federal program may cause you to be fully or partially ineligible for other sources of federal funding.
- Different federal funding such as loans and grants from multiple agencies will roll out at different times, so it’s important to consider the timing of the funding source.
- Federal economic disaster recovery loans are accessible right now for qualified businesses; however, no federal economic disaster recovery grants have been announced. Unfortunately, for businesses seeking immediate help, there is no way to predict which future federal tools – including grants – may be employed as COVID continues to impact the US economy. This can place businesses in the challenging position of weighing an immediate federal tool against the possibility of future programs that may or may not be offered, with requirements yet to be determined.
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
Governor Jared Polis announced that Colorado’s application for federal disaster area designation has been approved.
- Applicants must meet the SBA requirements of a small business (500 employees or fewer)
- Businesses directly affected by COVID-19
- Businesses that offer services directly related to the businesses in the declaration
- Other businesses indirectly related the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)
- Agricultural Enterprises: If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.
- Religious Organizations
- Charitable Organizations
- Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
- Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above.
- Cannabis Industry
LOAN APPROVAL CRITERIA:
- Credit History: Applicants must have a credit history acceptable to SBA.
- Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan.
- Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.
HOW MUCH YOU CAN BORROW:
- Eligible entities may qualify for loans up to $2 million.
- The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.
- Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.
HOW THE FUNDS CAN BE USED:
These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion. Funds cannot be used to pay down long-term debt.
WHAT IS NEEDED TO APPLY:
- Completed SBA loan application (SBA Form 5).
- Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.
- Complete copies of the most recent Federal Income Tax Return.
- Schedule of Liabilities (SBA Form 2202).
- Personal Financial Statement (SBA Form 413).
- Income, balance sheet, and cash flow documents.
- Other Information may also be requested.
Business Support Groups & Pages
Grand Valley Business Support – A Facebook group to help the business community support each other as well as share resources and information in real time.
Grand Junction Area Chamber of Commerce Take Out Tool Kit – A list of restaurants, bars, and coffee shops to keep you connected with any business who is continuing to offer take out, curbside, and/or delivery services.
Small Business Administration
- SBA Disaster Assistance in response to Coronavirus (COVID-19)
- The SBA Guidance for businesses and employers, including access to capital, workforce capacity, inventory and supply chain shortfalls, and export assistance.
Colorado Department of Labor & Employment
- Emergency Paid Leave Rule – This rule is meant to limit the spread of highly contagious disease and enables workers in at-risk occupations to access testing.
- Unemployment Insurance – During layoffs, all employees are encouraged to apply for unemployment insurance. Those who are job-attached (meaning workers will be expected to return after a separation of up to 16 weeks) should file as “job-attached.”
- Work-Share Program may allow certain employees who have had reduced hours to claim partial unemployment benefits.
- Colorado Restaurant Association Policies and Protocols for the Colorado Restaurant Industry
- Environmental cleaning and disinfecting
- U.S. Department of Labor Offers Guidance for Preparing Workplaces for Coronavirus
- Pandemic Preparedness in the Workplace and the Americans with Disabilities Act
- Division of Federal Employees’ Compensation: Information on FECA Coverage for Coronavirus Disease