Federal PPP applications re-open today

With the new $284 billion Congressional appropriation for small business relief, the federal Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers.

To promote widespread community access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP program will open to all participating lenders shortly thereafter.

Eligible lenders of the first two draws of PPP loans are one of four types:

• Community Financial Development Institution (CDFI)
• Minority Depository Institution (MDI)
• Community Development Corporation (CDC)
• Microlender Intermediary

Review this list of participating Colorado Community Development Financial Institutions.

In the new rounds of PPP, businesses that use an agent to file their PPP applications will be responsible for covering the corresponding expense for their service. In the 2020 PPP allocations, the lender paid that fee; however, businesses are now responsible for the fee and cannot use PPP funds to reimburse themselves. For PPP applicants that have previously received PPP loans, the financial institution which processed last year’s loan is your best place for you to begin new inquiries.

In preparation, this Prepare for the PPP document outlines the key elements needed to prepare for your PPP application.

Finally, to help guide you through the process, the following links provide detailed information for each corresponding element of the federal stimulus:

• 1st Draw PPP Loans: For qualified recipients that have not previously received a PPP loan
• 2nd Draw PPP Loans: For qualified recipients that have previously received a PPP loan
• Eligible PPP expenses for forgiveness have been expanded
• Guidance on Accessing Capital for Minority, Underserved, Veteran
  and Women-Owned Businesses
• Changes to Employee Retention Tax Credit
• EIDL and the EIDL Advance program are re-opening for target areas. Information is forthcoming from SBA.
• Shuttered Venue Grants: Businesses who qualify for this grant cannot receive this grant and new PPP funds. They will need to make a decision as to which funding source makes the most sense for their business.

Open programs and funding opportunities

Tech Venture Accelerator for Women: This 10-part virtual cohort series helps female entrepreneurs in emerging companies in Colorado’s advanced industries to overcome hurdles in order to accelerate growth and development. The format, topics and tangible assistance the program offers was developed from success working with early- and second-stage science and technology ventures for more than 10 years. Applications are due on January 14.

Global Trade Activator Program: This four- to six-month training program helps small business entrepreneurs develop and implement their global trading strategy. You will learn how to export your products to new markets and/or source international products to more competitively sell in the United States. Applications are due on January 18.

Employee Ownership Trial Grant: This $3,000 grant is available to Colorado-headquartered small businesses to pay for the reimbursement of professional technical services required to transition your business to become a Colorado Employee Owned Company. Eligible employee ownership structures include any model offering an employee ownership stake to at least 20% of your employees. Applications are due on February 26.

Proof of Concept Grant: This grant provides funding to help Colorado research institutions speed up applied research in advanced industries and commercialize products and services with the private sector. The grant funds pre-commercial research and commercialization preparation. Projects can receive up to $150,000. Applications for the grants are due on March 1, 2021.

Early-Stage Capital and Retention Grant: This grant helps Colorado-based advanced industries technology businesses develop and commercialize advanced technologies that will be created or manufactured in Colorado. Projects can receive up to $250,000. Applications are due on March 1, 2021.

Advanced Industries Investment Tax Credit: This tax credit encourages investments in Colorado advanced industries businesses by providing tax credits to investors. Investors can earn a state income tax credit for 25% of their investment up to $50,000 in credits on an investment of $200,000 or more. Funding was renewed on January 1, 2021 and we will accept applications until funds are gone.

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