A Survive and Thrive program, launched in partnership with Exponential Impact and the City of Colorado Springs

OVERVIEW

Exponential Impact (XI), in partnership with the City of Colorado Springs will provide loans up to $50,000, along with mentorship and learning opportunities through the Survive and Thrive program. XI is an engine for entrepreneurial growth in Colorado Springs dedicated to giving entrepreneurs the best start humanly possible. XI combines its strong network of leaders, investors, mentors, and business owners to provide impactful tools that pair access to capital with capacity building programming.

APPLICATIONS OPEN OCT 28 - NOV 22, 2024

SUMMARY

Survive and Thrive Revolving Loan Fund (RLF) is an initiative led by Exponential Impact, in partnership with the City of Colorado Springs, who’s core competency is in pairing funding with holistic programming to support sustainable company growth. The overarching intent of Survive and Thrive RLF is to provide support and growth infrastructure to business owners to make necessary pivots and develop scaffolding for future city-wide prosperity.

The Survive and Thrive RLF links mentoring and access to tools and resources with capital to support Colorado Springs small businesses. This program provides up to $50,000 in loan funding to eligible businesses and holistic programming to provide participants with both financial resources and community support. If awarded funds, business owners are expected to participate in an 8-week program. Businesses participating in the program will benefit from having access to mentorship and networking opportunities, as well as in-person skill-building workshops.

In order to receive a loan, owners must participate in the XI Survive and Thrive program, this participation will come before the funds are distributed and is intended to build capacity and support leadership development. Programming includes:

WHO IS THis loan FOR?

  • Colorado Small Business Entities, Non Profits, and Sole Proprietors that fall into one or more of the following categories:

    • Seeking growth opportunities

    • Hire, train, or retain employees

    • Redefined business model or recapitalized

    • Barriers to accessing traditional capital or financing

    • Early or mid-stage stage businesses looking to scale
      **Startups on a case by case basis

    • No established credit history

    • Temporary financial strain emerging from external circumstances

    • Primary business activities are conducted in El Paso County with majority of employees working in El Paso County

    • Employ no more than 50 full-time employees

    • Earns less than $2,000,000 in annual gross revenue

    • Payday loan businesses

    • Pawn shops

    • Adult entertainment

    • Passive real estate investments

    • Home-based businesses operating without appropriate zoning and/or permits

    • Marijuana related businesses

  • Loan applications will be open for approximately one month on a bi-annual basis, with cohort programming being held after loans are awarded. The goal is to provide a permanent financial tool while supporting the needs of applicants to support economic growth and locally owned businesses. As such, the fund will be divided into two programs, Micro Loans and Growth Loans. The no-collateral loans offer competitive low rates with the three-year loan period having 2% interest year one (interest waived if paid in full prior to end of year 1), 3% year two, 4% year three, and no prepayment penalty.

    Accelerate COS is a loan program, not a grant program.  Approved loans will have a three-year term and payment schedule. Submitted applications do not guarantee loan approval. Loan applications will open two times per year. Loan sizes are subject to change based on fund size and discretion of loan committee. Interest rates are subject to change in accordance with market changes, to be approved by the Executive Committee.

LOAN DETAILS AND TERMS

To qualify, businesses must demonstrate a minimum of 6 months of revenue generation. Startups with limited revenue history are only eligible to apply for a micro loan and must provide detailed cash flow projections. *Loan amounts are subject to change based on fund size and discretion of loan committee

PLEASE NOTE: A successful application ultimately focuses on two essential pillars: (1) how well do you share your business's story, and (2) how detailed is the justification provided for the requested loan amount & how it will be utilized. Clear, comprehensive responses are crucial for approval - vague or incomplete information could result in denial.

Micro Loan Terms 

Loan Amount: $1,000 - $10,000 

Loan Term: 3 years - No prepayment penalty

Interest Rate

  • 2%* interest and no payments due in Year 1

  • 3% interest and monthly payments in Year 2

  • 4% interest and monthly payments in Year 3

*0% interest if paid in full during year one

GROWTH Loan Terms 

Loan Amount: $10,000 - $50,000 

Loan Term: 3+ years - No prepayment penalty

Interest Rate

  • 2%* interest and no payments due in Year 1

  • 3% interest and monthly payments in Year 2

  • 4% interest and monthly payments in Year 3

*0% interest if paid in full during year one

*Interest rates subject to change in accordance with market changes and the Executive Committee.
Businesses with a current Survive and Thrive loan balance are not eligible to reapply until the balance is repaid.

Program TIMELINE

APPLICATION QUESTIONS

*Please have the following information available when you begin the application. We suggest reviewing the full application and prepare your narrative statements on a separate document to be copy/pasted into the application when you’re ready to complete. See below for resources and templates.

    • Business Legal Name and DBA (if applicable)

    • Contact Name, Phone Number, and Email

    • Owner Demographics

    • Business Phone Number, Operating Address, Mailing Address, Website

    • Location of Business (Home-Based, Own Commercial Space, Rent a single Commercial Space, Rent Multiple Commercial Spaces, Other)

    • Business EIN or SSN

    • NAICS Code

    • Starting Month/Year of Business

    • Brief Description of Business

    • Legal Structure (LLC, S-Corp, C-Corp, Non-Profit, Partnership, Sole Proprietorship)

    • Industry (Agriculture, Arts, Child Care, Construction, Education, Entertainment, Finance, Fitness, Food/Beverage, Health Services, Hospitality, Manufacturing, Non-Profit or Social Services, Personal Services (beauty/grooming, hairdresser/barber, nail technician, etc.), Professional Services (legal, accounting, consulting, etc), Retail, Real Estate, Recreation, Sports, Technology, Telecommunications, Transportation, Other)

    • Business Ownership List (Proprietors, all partners and stockholders owning 5% or more of outstanding stock)

    • Names of all corporate officers (Name, % ownership, Title/Position, Time with Company (months)

    • Number of jobs at time of application- FT and PT

    • Average Monthly Payroll Expenses ($/mo.)

    • Number of new jobs to be created as a result of this loan: (within 1 month, 3 months, 6 months, 9 months, 1 year)

    • Areas of business or business knowledge you would like to improve

    • Description of current team, mentors, advisors, etc.

    • Loan Amount Requested

    • How will Funds be Utilized? (Hire, train, or retain employees, business acquisition/development, Expand small business, purchase of business, purchase of franchise, purchase of vehicle, purchase of equipment, buy/build/renovate commercial real estate, working capital, consolidation of debt, inventory/supplies/,materials, leasehold improvements, general business expenses, other)

    • How will these funds support the long-term viability of your organization?

    • How did you hear about us?

  • A successful application ultimately focuses on two essential pillars: (1) how well do you share your business's story, and (2) how detailed is the justification provided for the requested loan amount & how it will be utilized. Clear, comprehensive responses are crucial for approval - vague or incomplete information could result in denial.

    • Pay off non-business debt, such as personal credit cards for purchases not associated with the business

    • Personal purchases or expenses such as buying a new family car or making repairs to a participant’s home

    • Direct financing to political activities or paying off taxes and fines

    • Purchase of personal items

    • Support of other businesses in which the participant may have an interest

    • Relocation of the business

REQUIRED DOCUMENTATION

In the application process, you will be asked for a narrative (written explanation) about the potential impact of these funds on your business and how you plan to use the funds. This narrative is a key part of the application, often carrying equal weight to the financial data. Your narrative should vividly portray your vision, strategy, and commitment to leveraging the funds effectively for business growth. To make your application stand out, here are some ideas to help writing the narrative portions:

    • We recommend providing specific, measurable, and realistic details about how the funds will be used.

    • Use this narrative as a platform to demonstrate your passion and dedication to the success of your business, and impact in our community.

    • Share stories that convey your unique journey and the significance this program will have in your entrepreneurial path.

    • Highlight the community benefits your business brings, as your success reflects positively on the economic growth of Colorado Springs.

    In essence, your narrative is your canvas; paint a clear, compelling picture of your future and the role the Survive & Thrive Program and Loan will play in achieving it. The documents listed below help to demonstrate the viability and legitimacy of the business.

    • All Applicants

      • Character Reference Letter(s)/Letter(s) of Recommendation

      • Business Plan - or strong narrative within application describing: what you do, who you serve, and what your plan for growth is

      • If Corporation: copy of Articles of Incorporation, Bylaws, and current Certificate of Good Standing from State of Colorado

      • If Partnership: copy of Partnership Agreement

      • If LLC: copy of Articles of Incorporation, Operating Agreement, and current Certificate of Good Standing from State of Colorado

    • Growth Loan

      • YTD and Prior year Profit & Loss Statement

      • YTD and Prior year Balance Sheet

      • YTD and Prior year Cashflow Statement

      • Most recent business tax return

    • Micro Loan

      • 2-3 years of cash flow projections

      • Founding Team Bios or Resume(s)

      • Revenue and Expense Summary for at least 6 months

      • Budget for Startup Costs

      • Evidence of Customer Traction

RESOURCES

Balance Sheet Template

CASH FLOW TEMPLATE

PROFIT AND LOSS TEMPLATE

APPLICANT EXAMPLES

APPLICATION AND REVIEW PROCESS

Applications will be open for one month, two times per year. A review committee, consisting of volunteer community leaders, City of Colorado Springs Professionals, and XI staff, will meet to review all submitted applications, with the goal of making announcements within three weeks of submission deadline, and at least two weeks prior to start of programming. Programming will take place for 8-weeks, following funding announcements. Participants will receive their full loan following the successful completion of the program.

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