COLORADO SPRINGS — The Colorado Springs Downtown Development Authority has established a $300,000 fund to help downtown businesses get through the slower winter months.
Approved owners will receive three monthly payments, each equal to half their monthly rent or mortgage payment, at a 2 percent fixed rate for 21 months. The first payment would be due by the end of September 2021, and the final payment is due by the end of September 2022.
Business owners have until January 4, 2021, to file their applications.
During the application process, business owners are asked to provide whether their location is food & beverage or a retail or anchor attraction. The square footage, 2019 gross revenue, 2020 gross revenue, and whether the business is owned or leased are considered in the process as well.
Additionally, applicants must provide documentation for a 2019 profit & loss statement, 2020 profit & loss statement, a current balance sheet, the total sales tax remitted to the City of Colorado Springs for 2019 and 2020, a recent mortgage statement or proof of lease payment, and their relationship to any members of the board of the Downtown Development Authority.
Click here to learn more about the program and download an application
Information provided by the Colorado Springs Downtown Development Authority
Timeline
- Dec. 17, 2020: Applications open
- Noon Jan. 4, 2021: Application submission deadline
- Jan. 6-8: Applicant interviews
- Jan. 13: Notification of acceptance or decline
- Jan. 18: First loans distributed (total loan will be disbursed through three payments in equal amounts in January, February and March)
Applicant eligibility
- The program is open to street-level food-and-beverage, retail and large-footprint commercial anchors located within DDA boundaries. However, relief will be awarded with the following prioritization, based on limited available funds:
- 1. Full-service restaurants.
- 2. Limited-service restaurants such as taverns, coffeeshops and fast casual/counter service.
- 3. Retail and anchor attractions 5,000 square feet and above.
- 4. Retailers below 5,000 square feet.
- Applicants must have been open or operating on or before Nov. 1, 2020.
- Applicants must have an active lease or mortgage on a street-level commercial space located within Downtown Development Authority (DDA) boundaries. Businesses owning their property free and clear are not eligible.
- Applicants with a lease expiring on or before September 30, 2021, may be required to provide indication of intent to extend lease.
- Applicants must be in good standing with the Colorado Secretary of State’s Office; must not be delinquent on any state/local taxes; and may not have any outstanding judgments, tax liens or pending lawsuits against them. Independently owned franchises are eligible.
- National chains are ineligible, although businesses with five or fewer operations under the same brand throughout Colorado are eligible.
Program criteria
- Approved loans will be paid in equal installments on the 20th of the month in January, February and March.
- Total loan amounts will be structured for up to 50 percent of the typical monthly rent/mortgage costs demonstrated by borrower. This includes base rents and triple net costs.
- Through the course of the loan, borrowers will be required to demonstrate proof of application to any future relevant regional, state or federal COVID relief, to include local/state sales tax relief, State of Colorado restaurant grants, and any new PPP-style or similar federal aid.
- Through the course of the loan, should El Paso County Public Health requirements allow indoor capacity of 50 percenter or greater, whether by the County achieving Yellow status or better on the State’s COVID dial or by the County providing a variance program allowing compliant businesses to return to 50 percent or greater capacity, borrowers are required to be fully open/operating at 50 percent capacity within two weeks of the County achieving Yellow status or better or within two weeks of the County implementing a variance program allowing a return to 50 percent capacity.
- Borrowers will not be required to open/operate while El Paso County restrictions limit capacity to anything less than 50 percent.
- Borrowers agree to participate through brief monthly, and eventually quarterly, communications through email or a short phone call to keep DDA informed of their business conditions.
