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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on June 28, 2024. Next review due October 1, 2025.
Small business grants can be an excellent way for Colorado business owners to fund their big ambitions. Unlike commercial loans, grants are free money – they do not need to be repaid – and credit scores and many of the usual requirements of commercial lending typically do not apply.
Colorado business owners seeking grant funding should expect a lengthy application process, typically needing to meet strict guidelines, timelines and other qualifying criteria. Additionally, they should be aware that competition for this type of funding is often fierce and even if they do qualify, the award sum may be small, requiring them to seek additional finance.
Many business grants are tied to specific goals – entrepreneurial, educational, creative and motivational – and selection committees have full control of the award process and the sums distributed. As well as meeting each program’s rules of eligibility, you will usually need a strong business plan that includes a feasibility study and an indication of how you will keep your venture going in the post-grant period.
There are many types of business grants available in Colorado. Award sums, qualifying criteria and selection committee objectives vary from one source to another. Here are just a few of the most popular grant programs and providers:
The Colorado Office of Economic Development and International Trade (OEDIT) encourages dynamic economic development and sustainable job growth with a range of financial and technical programs that support various Colorado industries, regions, and sectors. This strategy includes the delivery of funding, services and other support mechanisms via more than 120 grant programs and incentive initiatives.
Apply for everything from tax credits and art courses to film production grants and tourism marketing funds from one convenient location. Grant awards can go from the low $thousands to $350,000 and more.
Also known as the Skill Advance Colorado program, Colorado’s customized job training grants offer State funding to strengthen business competitiveness, foster talent and improve employment opportunities. Jointly offered by the Colorado Community College System and OEDIT (see above), the program comes in two varieties:
If you run a Colorado-based food business or farm, this grant could be a good match for your funding needs. The Small Food Business Recovery and Resilience Grant aims to increase access to and lower prices for healthy food in low income, low access areas of the state by supporting small food retailers and small family farms. With a total award pot of approximately $6 million, the program can offer individual grants of up to $50,000 per qualifying business per year.
First Southwest Community Fund has partnered with the Colorado Startup Loan Fund to offer small business grants of up to $15,000 for underserved small businesses (10 or fewer employees) located in rural Colorado. Grants can be used for:
Strictly for businesses located in the downtown area of the city of Colorado Springs, the nonprofit Downtown Development Authority offers small business grants to help local enterprises grow and thrive. Grants are awarded across three different categories:
The Denver Foundation is a Colorado-based nonprofit organization that focuses their funds and energies on the seven-county Denver metropolitan region. The Foundation offers a range of grants, typically aimed at reducing racial, ethnic and economic disparities. Grant awards vary from $20,000 to $50,000 per successful claimant. Nonprofits located in the Metro Denver region with a 501(c)(3) designation can apply for funding in the spring and fall each year.
MORE: Find grants for minorities, veterans, women, felons, black women and farmers.
If you can’t find the type of grant you need locally, these national grant programs also provide support for Colorado business owners.
Grants.gov is a one-stop shop for businesses and individuals seeking federal grants and the federal agencies that manage the grant funds. Inside the store you’ll find twenty-six federal grant-making agencies and more than 900 grant programs that award more than $400 billion in grants per year.
If you’ve got a tech business or a scientific and engineering venture needing funds, America’s Seed Fund could be your solution. This grant program focuses on technology and scientific products and services that promise high commercial and societal impact. The program awards $200+ million in research and development (R&D) funding to about 400 startups across the United States every year. America’s Seed Fund is a program within the National Science Foundation and housed within the Directorate for Technology, Innovation and Partnerships.
Offering a total of $435,000 in awards per year, this is one the most generous grants programs. The WomensNet Amber Grants awards multiple grants per year, with $10,000 being offered monthly in three separate categories (total of $30,000 per month available). Participants who win a monthly prize also automatically qualify for the draw for an annual $25,000 award – with three prizes available, one for each award category.
You can apply for any of these grants by completing an online application and paying a $15 entrance fee.
Colorado entrepreneurs who work for themselves may be eligible for a National Association for the Self-Employed (NASE) business growth grant of up to $4,000. Since 2006, nearly $1 million has been awarded through the program, with grants used for marketing, advertising, hiring employees, expanding facilities and other specific business needs. Note that you must be a member of NASE to apply for a grant. (Membership fees may be applicable).
To help address the needs of America’s smallest businesses, the Small Business Administration (SBA) operates the Program for Investment in Microentrepreneurs (PRIME). The SBA annually awards PRIME grants to pay for training and technical support for microenterprises, or businesses with fewer than five employees and that generally lack access to conventional loans, equity, or other banking services. In 2023, the program provided grants to 32 businesses for a total value of $8 million.
FedEx operates an annual prize competition for small business owners. All you need is a US-based business that’s been in operation for six months plus a FedEx business account that’s also at least six months old. Program participants must produce a presentation that reveals how a grant award could boost their business. Ten winners share a total prize pool of $230,000 – with a $50k first prize and nine x $20k prizes for the runners-up. All ten winners also get free access to a range of FedEx small business services.
Business loans may provide an alternative source of funding for your business or new venture. Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:
Term loans are the most common type of commercial loan. You receive a single, lump-sum cash injection and then pay it back in regular installments over a fixed period of up to 25 years. Collateral may be required.
A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.
Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral required.
Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.
Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.
Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.
Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.
Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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