Thursday May 28, 2020 0 comments
DENVER -- Colorado Enterprise Fund (CEF), a certified SBA lender, raised $11.2M in capital and has processed more than $11.9 million in loans to 389 Colorado businesses through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) in the second round of funding that began April 27.
As part of CEF’s COVID-19 response to assist Colorado small businesses, the nonprofit partnered with other key lenders who provided CEF with the funding to help vulnerable small businesses save 2,040 jobs through PPP loans which were their financial lifeline to business continuity.
CEF received 648 total loan applications and deployed a total of $11,989,240, with an average loan size of $30,821 – much smaller than the national average loan size of $206,000 in the first round of PPP funding.
In addition to financial support, CEF has also provided more than 500 hours of free coaching services to help businesses through the PPP application process and make strategic decisions about surviving this period of little or no revenue due to mandated business closures and reduced economic activity.
After the first round of PPP funding was quickly depleted, many small businesses were left without options for funds to sustain operations during closure due to COVID-19.
Upon learning that a second round of funding would become available, CEF raised the capital needed to make the PPP loans, thanks to the support of the following community partners:
- Community Banks of Colorado, a division of NBH Bank
- First National Bank of Omaha (FNBO)
- Bohemian Foundation
- Gates Family Foundation
The PPP loans provide financial relief for both the business and its employees to help position them to recover and rebuild in the new COVID environment.
“As a nonprofit lender certified by the SBA, we can make loans to businesses that may not have a bank that is a PPP lender and, we can also provide advisory services to help those that may have been rejected for PPP loans,” said Ceyl Prinster, CEF president and CEO.
“Small businesses provide jobs, support the economy, and make Colorado the special place that it is. We are deeply committed to helping these businesses get through this very difficult and unpredictable time.”
CEF’s PPP loans went to businesses from a variety of sectors and included CEF’s existing borrowers, as well as new ones.
The PPP is a U.S. government loan program that provides businesses with loans that are 100% guaranteed by the SBA and will be forgivable if they are used to pay for employee salaries, rent, and other necessary costs of their business.
Enacted as part of the recent federal CARES Act, the PPP is administered only through SBA-certified lenders like banks and organizations like CEF.
As a non-profit CDFI mission lender, CEF has loaned more than $108M over its 43-year history and is strongly committed to the ongoing support of small businesses in Colorado.
CEF said it will continue to offer PPP loans based on funding availability, in addition to other COVID relief and recovery loan products, as well as business coaching services.
Founded in1976, Colorado Enterprise Fund provides loans up to $1 million to finance small businesses and startups unable to obtain funding through traditional banks.
CEF has disbursed $108 million in startup and growth capital to more than 3,000 businesses and created or retained more than 12,500 jobs in the state.