What is the law?
The Energize Colorado Gap Fund will provide more than $25M in loans and grants to small businesses that have been impacted by COVID-19. Eligible businesses with less than 25 full-time employees can apply for of up to $15,000 and a loan of up to $20,000 for a total of $35,000 in financial assistance. Applications and awards will be done in rounds to allow the Colorado Housing and Finance Authority (CHFA) to provide assistance through December 2020.
How does a business show it’s been impacted?
Businesses need to demonstrate and clearly articulate through writing the economic hardship their business is experiencing through the business’s choice of documents such as bank records, point of sale receipts, profit and loss statements, or other documents demonstrating economic harm. The types of economic hardships that qualify for assistance through this program include:
- Loss of revenue due to the COVID-19 public health emergency associated with a stay at home order
- Loss of revenue due to the COVID-19 public health emergency associated with a voluntary closure of the business to promote social distancing measures
- Loss of revenue due to a decrease in customer demand due to the COVID-19 public health emergency
- Increased costs to operate the business due to the COVID-19 Public Health Emergency
What is the rollout timing?
On Monday, August 31, 2020, this page will host an online application: https://energizecolorado.com/gap-fund/.
The process will not be first-come-first-serve, it will be a competitive process that will help the businesses most impacted, and most in-need receive priority access to assistance.
The loans will have a maturity date in the future of 24 to 36 months with up to a 4-month payment deferment. The interest rates are anticipated to be very low at an initial rate for the first 12 months of 1% and then 1.5% after that. There is no prepayment penalty
What business expenses can be paid with a grant or loan from Energize Colorado?
Grants may be used to reimburse lost revenue during the COVID-19 public health emergency due to:
- A stay at home order
- Voluntary closure of the business to promote social distancing measures
- A decrease in customer demand
- Increased costs to operate the business.
The use of loans must be agreed upon in advance with the lender but some examples include:
- Payroll costs including premium pay and overtime related to the COVID-19 pandemic
- Increased workers compensation cost due to the COVID-19 pandemic
- Programs and supplies to implement COVID-19 social distancing and safety measures
- Training to mitigate the impact for employees furloughed due to COVID-19
Your grant or loan cannot be spent on:
- Expenses that have been or will be reimbursed under any other federal program
- Capital Purchases or Construction (Capital purchases are defined as expensed greater than $25,000 with a usable life of five years or more)
How can RSI assist?
When gathering documents to demonstrate the business impacts of COVID-19 RSI is here to help polish up, reconcile, or even make adjustments to your profit and loss statement(s) that you have meant to get to for months now. It is understood that certain tasks get pushed aside in times like this but RSI will prioritize your needs to ensure your financial statements get the attention needed.
This document covers the main points of the Energize Colorado Gap Fund but a long list of FAQs can be found here: https://energizecolorado.com/gap-fund/faq/ that cover a wide range of topics.
If you have any questions please send a support request to RSI’s Compliance Team or an email to Compliance@rsiaccount.com.