US Small Business Administration (SBA) 504 loans are available to finance the purchase, construction or improvement of real estate primarily used by that small business. The broad intent of this program is to encourage small business owners, when they are ready for this next step, to become their own landlords, basically, and build wealth and equity for themselves and their families through owning the commercial real estate that they use to operate their business. The SBA 504 loan program can also be used to help finance the purchase of what the IRS defines as capital machinery and equipment, like large presses, heavy construction equipment, etc. SBA 504 loans are available through certified development companies like Colorado Lending Source in partnership with a conventional bank loan.

SBA 7(a) loans are loans made by commercial lenders to small businesses for most good business purposes, including the acquisition or improvement of real estate. Because of the broad scope of 7(a) loans, these are the loans most thought of or associated with SBA lending in the United States. The incentive for banks to make these loans is the fact that the SBA will guarantee the loan that is being made. Under current small business jobs act legislation, the SBA is guaranteeing 90% of the loan up to a maximum of $5 million. Colorado Lending Source is unable to originate 7(a) loans (because we aren't a bank), but we can help commercial lenders package and process these types of loans if they would like us to.

New Markets Tax Credit (NMTC) loans operate similarly to SBA 504 loans although the NMTC source used by Colorado Lending Source is independent of SBA. In some respects, this allows for more flexibility in delivery and utilization of NMTC funds. For example, non-profit businesses can ususally access NMTC funding whereas non-profit businesses are typically prevented from accessing SBA loan programs.

Colorado Lending Source is expanding operations to provide other sorts of needed loans to small businesses in Colorado.

Colorado Lending Source provides regular free training webinars and workshops to better acquaint individuals with the various loan programs we offer. You can sign up for email updates by clicking HERE.

Colorado Lending Source is a private, non-profit, community-based economic development lender whose mission is to foster the economic growth of diverse small businesses within the state of Colorado. We offer access to a number of financing solutions for small business owners or prospective small business owners.