2020 Legislative update: Gov. Polis signs two bills providing relief to small businesses

This afternoon Gov. Polis signed SB20-222 and HB20-1413 into law. These bills creates two different funding sources for small and micro business:

  • Grant program for businesses with fewer than 25 employees.
  • Loan program for businesses between 5-100 employees.

As this is breaking news, information is still being released by the relevant departments within the state government. The Basalt Chamber will continue to monitor these developments and communicate important updates to its members. These funding sources will also help businesses who may not have be able to get a PPP loan.

Watch the press conference

Press release | Governor Polis Signs COVID-19 Relief Bills Into Law

Gov. Polis logo

SB20-222 | Use CARES Act Money Small Business Grant Program

The bill creates a small business COVID-19 grant program, financed by $20 million from the federal money allocated to the state pursuant to the federal “Coronavirus Aid, Relief, and Economic Security Act”, also referred to as the “CARES Act”. The Colorado Office of Economic Development will administer the grant program and the Colorado economic development commission will contract with the Colorado housing and finance authority (CHFA) to operate the grant program.

Read the bill

To be eligible for a grant, a small business must have fewer than 25 employees and have been affected by economic hardship caused by the COVID-19 pandemic. A preference is given for a small business that did not qualify for or receive a paycheck protection program loan; is majority owned by veterans, women, or minorities; or is located in a rural area. $5 million is earmarked, until October 1, 2020, for tourism businesses.

HB20-1413 | Small Business Recovery Loan Program Premium Tax Credits

NOTE: This bill was co-sponsored by Sen. Kerry Donovan, who represents Eagle County and Basalt.

The bill authorizes the state treasurer to enter into a contract or contracts to establish a small business recovery loan program (loan program). The purpose of the loan program is to assist the state’s recovery from the COVID-19 pandemic by leveraging private investment for loans to Colorado small businesses recovering from the COVID-19 crisis. 

Read the bill

Once the money in a tranche is matched, it must be used to make loans of working capital to Colorado businesses with between 5 and 100 employees that meet eligibility criteria. The loans must be between $30,000 and $500,000, with a maturity of up to 5 years. The state treasurer may not invest a new tranche of state money until the prior tranche is at least 90% invested in small business loans.