Denver’s Economic Development and Opportunity Department is partnering with the nonprofit Colorado Enterprise Fund to make low-interest small business loans, in a program approved this week by the Denver City Council.

“This program puts cash on the barrelhead and sends a clear message that if you want to do business in Denver, you’ll have the full support of the city behind you,” Denver Mayor Mike Johnston said in a news release.

Proceeds for the program are from a city fund honoring former National Black Chamber of Commerce Chair Herman Malone, drawing 1% of retail marijuana sales tax revenues. Under the partnership, DEDO and CEF will launch a 3-year program to provide up to $9 million in loan capital for undercapitalized businesses.

Malone died in 2021.

Coaching for businesses

Individual loans could range from $10,000 to as much as $350,000, to be offered at subsidized lending rates of 4.99%, according to the release. The city emphasized that potential applicants could receive assistance in completing the application for a loan and would be provided with coaching during the life of the loan.

DEDO Executive Director Adeeb Khan said in the release that partnering with Colorado Enterprise Fund would create new pathways for small business owners to scale their business and create jobs.

“Small businesses are the foundation of Denver’s local economy and the soul of our neighborhoods,” he said.

The Colorado Enterprise Fund, established 50 years ago, has reportedly distributed $442 million in small business capital and provides one-on-one coaching in marketing, sales and accounting.

“As a revolving loan fund, every dollar repaid will be reinvested to support the next entrepreneur with a dream, thus sustaining the program and community impact for years to come,” CEF Chief Operating Officer Nim Patel said in the release.

Denver’s DEDO department offers the support under its Business Investments, Loans and Development program. Applications open June 1 and potential applicants are invited to virtual information sessions at 10 a.m. Tuesday, June 9, and at 3 p.m. Thursday, June 25. For more information and to sign up for a session, visit Denvergov.org/DEDO.