Gap Loan Revolving Fund Program

Gap Loan Revolving Fund Program is sponsored by City and County of Denver. This program provides below-market financing to help small businesses close funding gaps for projects like renovations, expansions, equipment purchases, or opening new locations.

Gap Loan Revolving Fund - City and County of Denver opens in new tab or window The Gap Loan Revolving Fund Program provides below‑market financing to help small businesses close funding gaps and reach their growth goals. Designed to support job creation, strengthen neighborhoods, and uplift underserved entrepreneurs, this program focuses on businesses operating in areas facing economic challenges.

The Gap Loan Revolving Fund helps small businesses access the gap financing they need to start, grow, or improve their operations. When a bank cannot fund the entire project, this program can step in to cover the remaining “gap,” making it possible for more businesses to move forward with an affordable loan.

The program focuses on supporting job creation, strengthening neighborhoods, assisting underserved entrepreneurs, and helping businesses in areas facing economic challenges. Depending on your location and type of business, the City may provide a portion of your project costs, offering loans between $51,000 up to $450,000.

Up to 40% of project costs for all small businesses Up to 75% for businesses operating in NEST neighborhoods Up to 90% for Denver Legacy Businesses Please review the information below to make sure your business meets the eligibility requirements for the Gap Loan Revolving Fund .

This program supports business projects—such as renovations, expansions, equipment purchases, or opening a new location—that need more financing than a bank can provide. To qualify, you must show that your project is ready, financially viable, and provides benefits to Denver residents. 1.

Financial Requirements Before applying, you must secure as much private funding as possible. This helps show the City what part of your project still has a “gap.

” Businesses must have the following minimum percentages covered by private commitments at minimum: Minimum private financing levels are: At least 60% of total project costs for all small businesses must come from private commitments At least 25% of all project costs for businesses in NEST neighborhoods must come from private commitments At least 10% of project costs for Denver Legacy Businesses must come from private commitments Additional financial requirements City funding is limited to a maximum of $450,000 You must show the City loan is necessary (bank can’t cover full costs, the investor return is too low, or site‑related costs make the project less competitive) You must show you can repay the loan and provide collateral Loan terms will be structured to support reasonable returns and sustainable cash flow Your project should support business growth and benefit the community.

Eligible project examples include: Renovations or new construction Expanding operations or opening a new location Improving an existing commercial space Additional project expectations: Projects must be located in Denver Project plans must clearly show how funds will be used Construction projects funded by the City may require payment of prevailing wage 3.

Eligible Use of City Funds City loan funds may be used for: City funds cannot be used to refinance existing debt. Your project must help create or keep jobs for Denver residents.

These jobs should: Be open to low‑ and moderate‑income workers Be entry‑level or include training for entry‑level employees Aim to provide long‑term, full‑time equivalent jobs with career advancement Additional job expectations: Recruitment may need to target certain Denver neighborhoods Project sites should have adequate access to public transportation.

Before starting your application, please make sure you have the items listed in the quick checklist below. Applicants who begin without these documents are usually unable to complete the process.

Basic business information Details about your project (location, costs, and timeline) Proof of private financing and commitment letters Financial documents (tax returns, statements, projections) Identification and required forms Additional documents if your project involves real estate or construction See the detailed list below for exact requirements.

• Legal business name, DBA, EIN, and contact information • Business description and NAICS code • Owners with 20%+ ownership • Resumes for key management • Organizational documents (Articles, Bylaws, Good Standing, Partnership Agreements) • Description of current operations, goals, and facility • Description of your project (renovation, expansion, equipment, new location) • Current and proposed address • Building details: size, condition, zoning, and ownership • Construction plans, cost estimates, and timeline (if applicable) • For food businesses: kitchen use history and capacity • Sources and uses of funds • Detailed project budget • Commitment letters from lenders/investors • Decline letters from lenders (if applicable) • Evidence of the financing gap • Federal funding details, if used • Business tax returns (3 years) • Current and annual P&L and balance sheets • Personal tax returns (3 years) for owners with 20%+ • Personal financial statements for all owners/guarantors • Cash flow projections for at least one year • Recent credit report (less than 3 months old) • List of past due government obligations 5.

Additional Required Documents • Leases or purchase contracts • Appraisals for real estate/equipment • Phase I Environmental Site Assessment • Permitting documents or Certificate of Occupancy • Construction contracts and drawings • Job creation/retention form • Schedule of business debt • W9 for borrowing entity • Government issued ID • SAM/UEI registration • Credit authorization and tax affidavit Before starting your application, please review the Checklist section to make sure you have all required documents ready.

Most applicants who begin without these items are unable to complete the process. We also recommend contacting our team at DEDOSBLoans@denvergov. org before applying.

We can help confirm your eligibility, answer questions about your project, and guide you through the next steps. Please note: We will analyze the loan application and advise the applicant of any deficiencies which need to be addressed. Once an application is complete and meets the criteria for the program, we will recommend the application to the loan review committee for approval.

How much can I borrow from the City? The Gap Loan Revolving Fund financing available to you varies with factors such as your business ownership, where the business is located, and how much private commitment you have secured. Revolving fund "gap" loans can vary from $51,000 to $450,000.

What is the lending rate or what is it based on? Interest rates are based upon a determination of what is necessary and appropriate for the transaction. Typically, the private financing is made available at market rates, while DEDO's participation is at a below market rate.

How long do I have to repay a city loan? A gap loan can be from 5-15 years depending on the use of the funding, but the loan can be amortized over a longer period of time. How long does it take to process a loan?

Preliminary approval of an application usually takes two weeks from the submittal of a complete application, including firm commitments of private financing. The processing of a formal city loan agreement and the closing of the loan takes approximately 12 weeks. Do I have to guarantee the loan?

How does Denver secure their loan? All individuals who own at least 20% of the business will have to guarantee the loan. In addition, the city will require the pledge of personal assets, if available, of all guarantor(s).

Denver normally takes a subordinated position to the lender on all business assets. What are the important criteria you require to have a loan approval? We look at the economic feasibility and evidence of repayment ability of the proposed project and benefits to the city (neighborhood impacts, creation of jobs, and so on).

Questions? Get in touch with our small business loans team. Email: DEDOSBLoans@denvergov.

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