SAN LUIS VALLEY— Businesses in the San Luis Valley continue to grow using the Business Loan Fund at the San Luis Valley Development Resources Group as a source for needed capital.
Since January 2018, 14 businesses have received financing to start or expand their business, and over $773,000 in loans has been made. Those loans are responsible for creating or retaining 26 jobs, according to San Luis Valley Development Resources Group (SLVDRG).
Jason Trujillo, a recent client, said he decided to use the loan program to help with his renovation of the Purple Pig in Alamosa. The loan enabled him to work with the contractor in a timely manner and to buy needed equipment. “The loan was very critical to my project,” said Trujillo.
As to the loan application process, Trujillo said it did not take long. “I found it really soothing. There wasn’t a lot of bickering – just a list of what was needed. It was easy. Not drawn-out.”
Trujillo finished his project and the Purple Pig Pizzeria and Pub opened Jan. 1, 2019 offering wood-fired pizza, pasta and a full bar. It is located at 624 Main St. in Alamosa.
With nearly $1.4 million available to lend, SLVDRG is looking for businesses or individuals ready to begin or improve their business. “SLVDRG is anxious to get these funds working in the local economy, especially in cooperation with referrals from the local banking community,” said Kevin Wilkins, SLVDRG executive director.
The SLVDRG business loan program provides gap financing, which represents the balance of funds needed for a project after commitments from other sources of financing, including the owners, have been identified and exhausted. This program is intended to help businesses access local lenders by sharing the risk and being flexible on collateral requirements. SLVDRG removes some of the risk for local lenders, which, in many cases, allows them to make loans otherwise outside their lending criteria.
“In addition to SLVDRG’s loan funds, we can make referrals to partner organizations to assist a business’s financial needs,” Wilkins said.
The SLVDRG Business Loan Fund manages over $6,000,000 loan portfolio and has been in existence since 1984. It has assisted 270 businesses during the past 25 years with loans of more than $20 million. Local banks and private investment leveraged these funds to $73 million with the creation of at least 1,423 jobs.
Entrepreneurs, businesses and partnering lending institutions interested in utilizing available funds may contact the San Luis Valley Development Resources Group at 589-6099. More information of the Business Loan Fund may be found at www.slvdrg.org/slvbusiness-loan-fund/.