Colorado Quantum Fund for Innovative Lending

Colorado Quantum Fund for Innovative Lending is sponsored by Colorado Office of Economic Development and International Trade (OEDIT). Part of the Colorado Quantum Fund, this initiative encourages lenders to make favorable loans to quantum companies by allowing them to register up to 15% of the loan in a pooled loan loss reserve.

The reserve is funded with a 100% refundable state income tax credit should the lender incur losses associated with those loans.

4. Colorado Quantum Fund (CQF) for Innovative Lending The Colorado Quantum Fund for Innovative Lending is now **open for lenders only**. At program launch, OEDIT will begin the program on a first-come, first-served basis with $3M of the total allowable credits.

Please review further details and current policy decisions in this CQF for Innovative Lending: Program Policy, (Google Doc). The Colorado Quantum Fund (CQF) for Innovative Lending, enacted as part of HB24-1325, improves access to capital for quantum companies in Colorado by encouraging lenders to make favorable loans to companies by registering up to 15% of the loan in a pooled loan loss reserve.

The reserve is accessible with a 100% refundable tax credit should the lender incur losses associated with those loans. Applications are currently open for lenders who complete a lender verification process. The total tax credit allocation will begin as first-come, first served.

**For:** Commercial banks, depository institutions, private lending funds, or other entities that make commercial loans to organizations in the quantum industry **Application Period:** Rolling. Applications close when $30 million in tax credits have been reserved. Before tax credits may be reserved, eligible lenders must complete a lender verification process.

**OEDIT division:**Business Funding & Incentives In July of 2024, the Economic Development Administration (EDA) selected the Mountain West’s application as one of 12 federally designated Regional Technology and Innovation Hubs (Tech Hubs) under the CHIPS and Science Act. The public-private partnership that began in 2023 would eventually distribute $10 billion across 5-10 Tech Hubs across the U.S. focused on 10 key technologies.

After being designated as a hub in October 2024, the Elevate Quantum coalition - a consortium of private and public sector organizations, academic institutions and nonprofits across Colorado, New Mexico and Wyoming - was selected for Phase 2 Funding, positioning Colorado’s quantum ecosystem for up to $900M in funding from this program alone.

To further promote the growth of Colorado’s quantum ecosystem, the Colorado General Assembly passed and Governor Polis signed bipartisan legislation that invests an additional $74 million across two incentive programs that will reduce growth barriers and ensure a bright future for all Coloradans. This funding was contingent on Colorado being designated for and earning this EDA Tech Hub funding award.

This historic state investment will boost Colorado’s booming quantum sector and position the state to draw down tens of millions more from the federal government, creating thousands of good-paying jobs.

Representing half of the bipartisan legislation signed in May of 2024, the Colorado Quantum Fund (CQF) for Innovative Lending supports and facilitates the development of the quantum ecosystem by encouraging lenders to make favorable loans to quantum companies that have limited access to capital.

The Colorado Quantum Fund (CQF) for Innovative Lending is a 100% refundable tax credit that supports eligible lenders who incur losses on previously registered loans. This program can be described by the following multi-step application process: 1. **Allocation of Program Pool:** there are $30 million in tax credits to distribute to eligible lenders throughout the lifetime of the program.

These may be distributed on a first-come, first-served basis, based on a competitive lender selection process, or via a combination of the two. For a competitive lender selection process, OEDIT will be looking for one or more lenders to certify eligibility in exchange for an allocation of the total Program Pool that may only be used by that lender. 2.

**Conditional Tax Credit (CTC) Applications:** to earn a conditional tax credit, lenders will submit one CTC Application per loan made to a quantum company. 1.

CTC Pre-Application: This application may be submitted before the loan is closed and provides assurance to the lender that the lender and borrower are qualified; that the loan is loan is eligible; and will tell the lender how much tax credit may come associated with the eventual registration, if the loan is closed as-is. 2.

CTC Application: This application will certify that the lender and borrower are qualified; confirm that the loan is eligible; and register the loan and tax credit as part of that applicants’ CTC pool. 1. At this step, the lender will be responsible for paying (on behalf of the borrower) a registration and issuance fee of up to 8% of the loan amount.

2. CTCs cannot be claimed unless the lender incurs a Certified Loan Loss and is provided a Refundable Tax Credit Certificate via a Loan Loss Application. 3.

**Certified Loan Loss (CLL) Applications:** if a lender incurs a loss associated with a registered loan (step 2), they may apply to OEDIT for a Refundable Tax Credit Certificate. This application will certify the amount of the Certified Loan Loss and, depending on the amount reserved in the CTC Pool, will issue a Refundable Tax Credit Certificate. 4.

**Claiming a Tax Credit:** to claim the credit authorized by this program, the applicant will file the Refundable Tax Credit Certificate with the applicant’s Colorado state income tax return for the tax year in which the Certified Loan Loss occurs. 1.

If the amount of the credit exceeds the amount of income taxes otherwise due, or the applicant is a person who is exempt from taxation, 100% of the amount of the credit not used as an offset against income taxes is refunded to the applicant. The CQF for Innovative Lending is currently in development and will be creating policies, procedures, and guidelines that govern the program and its usage.

Formal applications launched in August 2025. If you would like to be involved in the development of this program or would like to be kept informed, please use the signup form below.