Market Update: Bill to Boost Small Businesses and Create Jobs Passes Committee — Colorado Senate Democrats – Full Analysis

DENVER, CO – The Senate Finance Committee today passed legislation to expand eligibility for the successful CLIMBER (Colorado Loans to Increase Mainstreet Business Economic Recovery) program.

HB26-1003, sponsored by Senator Chris Kolker, D-Centennial, and Janice Marchman, D-Loveland, would remove the COVID-19 recovery provisions of the Small Business Recovery and Resiliency Loan Program and expand loan eligibility to better equip small businesses for success, create more good-paying jobs, and support local economies. 

“Here in Colorado, small businesses power our economy,” said Kolker. “Access to a loan to grow a business or help it get off the ground can be a game-changer for Colorado entrepreneurs, their employees, and our local communities. The updates to this program will increase access to loans for small businesses and create flexibility to allocate loans where the need is greatest throughout the state.”

“Since its creation during the COVID-19 pandemic, the CLIMBER program has delivered measurable results – supporting hundreds of small businesses and creating jobs,” said Marchman. “This bill modernizes the program to meet the needs of small businesses today, expand eligibility, and increase support for rural and underserved businesses.” 

In order to support Colorado’s small businesses during the COVID-19 pandemic, Colorado Democrats established the CLIMBER program in 2020 to offer small business loans with below-market interest rates. Under the program, small businesses with up to 99 employees may apply for working capital loans between $10,000 and $500,000. These loans can be used to hire more employees, start or expand brick-and-mortar storefronts, get new businesses off the ground, and more. In fiscal year 2023-2024, the CLIMBER program loaned over $17 million and helped create or support nearly 1,900 jobs across the state.

HB26-1003 would build upon a 2024 law sponsored by Kolker and Senate President James Coleman, D-Denver, to make the CLIMBER Program permanent and target resources and expertise to underserved businesses. It would reappropriate $5 million to the Colorado Startup Loan Fund, a program that’s been highly successful in supporting entrepreneurs in rural areas, multilingual business owners, and those who have been unable to receive traditional financing

The bill would also increase the accessibility of the Small Business Recovery and Resiliency Fund by lowering the private leverage requirement, which currently requires $4 of private funds for every $1 of state funds. The bill would lower the matching ratio requirement to 1:1. 

HB26-1003 now heads to the Senate Appropriations Committee for further consideration. Track its progress HERE.