Press Release: New Loan Program Helps 23 CO Businesses
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OFFICE OF GOV. BILL RITTER, JR.
WWW.COLORADO.GOV/GOVERNOR
FOR IMMEDIATE RELEASE
FRIDAY, SEPT. 25, 2009
CONTACTS
Jerilynn Martinez, (303) 297-7427, jmartinez@chfainfo.com
Evan Dreyer, (720) 350-8370, evan.dreyer@state.co.us
NEW LOAN PROGRAM HELPS FIRST 23 COLORADO BUSINESSES
Listen to Gov. Ritter's Remarks
AURORA -- Gov. Bill Ritter today joined the Colorado Housing and Finance Authority and the Colorado Enterprise Fund in announcing the first 23 businesses to benefit from the renewed Colorado Credit Reserve Program. The program is leveraging more than $400,000 in small business lending and supporting 161 new and existing jobs across the state.
"One of the best things we can do to re-energize Colorado's economy is to give small businesses the tools they need to succeed," Gov. Ritter said. "These first 23 loans are just the beginning for the Colorado Credit Reserve Program. Ultimately, the program will leverage nearly $50 million in capital for hundreds of small businesses so they can grow and create new jobs throughout Colorado."
The program was revived, after a several year hiatus, thanks to Senate Bill 67, co-sponsored by Reps. Sara Gagliardi and Don Marostica and Sen. Rollie Heath and signed into law by Gov. Ritter in May. Marostica is now director of the Governor's Office of Economic Development.
The first 23 businesses announced today span industries such as manufacturing, service, retail, restaurant and wholesale foods, as well as geographic regions such as Pueblo, Denver, Aurora, Colorado Springs, Estes Park, Boulder, Frederick and Trinidad. Seventeen of the 23 are women- or minority-owned businesses. The 23 businesses are:
- Abeyta and Son Trucking, Pueblo (Service/Trucking)
- ACCU-Door, LLC, Highlands Ranch (Service/Commercial Door)
- Bob's Processing, Trinidad (Service/Meat Cutting)
- Boondock Trails, Denver (Service/Mountain Trails)
- Centerline Welding, Evergreen (Service/Welding)
- Colorado K-9 Detection, Aurora (Service/Bug Detection)
- Desert Ceramics, Aurora (Retail/Ceramics)
- Diamond/ Co Enterprises, Littleton (Manufacturer/Beauty Products)
- Dirt Doctor Enterprises, Colorado Springs (Service/Cleaning)
- Emenheiser Design, Golden (Manufacturer/Inventor)
- The Finishing Touch, Longmont (Service/Janitorial)
- Grand View Landscapes, Aurora (Service/Landscaping)
- Hudson Studio, Frederick (Service/Arts)
- Iron Forge, Inc., Englewood (Retail/Trailer Service)
- Local Roots, Estes Park (Retail/Grocer)
- The Lundi Group, Denver (Manufacturer/Women's Apparel)
- The Mail Solutions, Colorado Springs (Service/Mail Store)
- Maintenance Done Right, Colorado Springs (Service/Maintenance)
- Mountain Awesome Foods, Castle Rock (Wholesale Foods)
- P.E.A.C.E. Productions, Colorado Springs (Retail/Service)
- Pure Hair Studio, Boulder (Service/Beauty Salon)
- Shorty's Soul Food, Denver (Restaurant)
- Terry's Art, Colorado Springs (Retail/Service/Art/ Framing)
"I am thrilled that Colorado's small businesses are getting help during this difficult time," Rep. Gagliardi said. "The Colorado Credit Reserve Program shows that even in this difficult economy, we believe our small businesses are competitive and have what it takes to thrive."
"I was pleased to carry this bill in the Senate and to see it signed into law, but it's even more rewarding to know that small businesses are now actually using the Colorado Credit Reserve Program," Sen. Heath said. "Our state needs jobs and economic activity to help us get through these difficult times, and this necessity led to the drafting of SB-067, along with the other bills that members of our Joint Select Committee on Job Creation and Economic Growth introduced in the 2009 session."
Today's announcement was made at Desert Ceramics in Aurora. "This loan helped us move to our new building," said owner Bill Dean. "It is what got us going. Here we had more people at our grand opening celebration than we did during the entire year we were at our old location. I hope more people will take advantage of this opportunity." In addition to helping with the relocation, the Colorado Credit Reserve Program will allow Dean to purchase new equipment needed to grow sales volume.
SB 67 provided the Colorado Credit Reserve Program with $2.5 million, which will be used to leverage more than $50 million in private bank loans over the next year. In addition to the Colorado Enterprise Fund, Wells Fargo, Premier Bank, Timberline Bank and the Upper Arkansas Area Development Corporation have signed on to make loans through the program. The program is being administered by the Colorado Housing and Finance Authority (CHFA), which operated the program from 1996 to 2006 until it fell dormant because of a lack of funding.
Cris White, CHFA's chief operating officer, said. "Historically, this program has been successful in leveraging $28 in private-sector lending for every $1 in public funds committed. During the decade that CHFA previously administered the program, we were able to help nearly 500 Colorado businesses, many of which were women or minority owned. It is our goal at CHFA to ensure today's program mirrors the success it has historically enjoyed."
CHFA is still accepting enrollments from banks interested in participating in the program. To assist in marketing the program to lenders, CHFA has partnered with the Colorado Bankers Association, Independent Bankers of Colorado, and National Federation of Independent Businesses, whose support was instrumental in the program's renewal.
Ceyl Prinster, president and CEO of Colorado Enterprise Fund, said, "This program will enable us to reach a broader segment of businesses that need access to capital to start or grow. Many of these are solid businesses that can create jobs, but their progress has been constrained by the credit crunch. We are proud to make loans to businesses like Desert Ceramics with the support of this program."
"This is a great program, and we're already seeing its effect in local communities like Aurora," said Rep. Su Ryden, who represents the area where Desert Ceramics is located. "With just a small state investment, this program is encouraging Colorado lenders to loan as much as $50 million to our small businesses so they not only stay afloat during this difficult time, but thrive."
For more information about how to participate contact CHFA's Denver office at 1.800.877.2432 or Western Slope office at 800.877.8450.
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Photo Captions
Desert Ceramics 1 & 2: Desert Ceramics owner Bill Dean shows Gov. Ritter some of the ceramic artwork at his Aurora store today. Desert Ceramics received one of the first loans from the revived Colorado Credit Reserve Program.
Desert Ceramics 3: From left: Desert Ceramics owner Bill Dean, Gov. Ritter and state Rep. Su Ryden.
Colorado Credit Reserve Program Fact Sheet
- The Colorado Credit Reserve program (CCR) is designed to assist businesses in meeting their capital needs by working directly with their local banking partner.
- The program works by establishing a pooled loan-loss reserve fund that banks may access to recover losses associated with loans registered in the program.
- CCR is modeled after 20 similar programs in operation throughout the U.S.
- The CCR program has received $2.5 million in renewed funding through SB09-67, which was signed into law by Gov. Bill Ritter on May 7, 2009.
- CHFA estimates the $2.5 million will leverage $50 million in private sector funds investment.
- Colorado Housing and Finance Authority previously administered the CCR program in Colorado between 1996 and 2006, helping over 500 businesses retain or sustain 2,700 jobs.
- Seventy percent of the businesses helped through the CCR program between 1996 and 2006 were women- or minority-owned businesses.
- CCR has an in-state success rate of leveraging $28 in private sector lending for every $1 of public investment.
- The program ended in 2006 due to lack of funding.
Visit www.chfainfo.com to learn more about the CCR program, or call CHFA's Denver office at 1.800.877.2432 or Western Slope office at 1.800.877.8450 for more information.