Proper-Tea Time Episode 4: Commercial & Small Business Lending
Here in Longmont, CO, we pride ourselves on our small business community. Of course, the last year or two has not been necessarily kind to small businesses, but there are excellent business financing options available. Whether you need help navigating a rough economic turn, are looking to expand, or need a little extra working capital to prepare for the holiday rush, commercial real estate and small business loans might be the right move. If you’re feeling a little overwhelmed or nervous about the idea—never fear! I’ve taken the “scary” out and broken it all down for you.
What is commercial and small business lending?
Many assume that business owners operate solely on their own capital or private investors, but that is just not true. To get a business up and running, most rely on business loans. Commercial lending is a financial relationship between a business and a financial institution, like a credit union or community bank, that provides funding for small businesses to cover startup costs, daily operations, commercial real estate purchases, expansion, and more.
Some common types of business lending include:
Business line of credit
Small business administration (SBA) loans
Working capital loans
Fixed interest rate loans
Business term loans
Asset-based loans
SBA express loans
Owner-occupied commercial loans
Unlike traditional loans, these options often come with more flexible terms, although most business loans have a term of 1 to 5 years, unless they are specifically for commercial real estate. Interest rates on these business loans are typically a bit higher than what an individual would get on a home mortgage, but the business loan interest is tax-deductible.
For Colorado small businesses, this type of financing can provide the resources needed to grow a business, cover unexpected expenses, or fund a business expansion without the delays of securing investors.
There’s no need to be scared!
I recently sat down with Drew Ballingham, a business lending expert at High Country Bank of Longmont, CO. With over 20 years of experience in business financing, Drew reassures that securing a business loan is not as intimidating as it may seem. Many small business owners wait until they’re in financial trouble before seeking assistance, but the best approach is to be proactive.
From SBA loans to community development financial institution (CDFI) funding, there are many financing options available. Whether you’re a startup loan applicant, need business funding for expansion, or want to invest in Colorado commercial real estate, there are solutions for every stage of your business.
Why it’s good to have a relationship with a lender
One reason many small business owners hesitate to seek business loans is that big banks can feel impersonal and rigid. Having a relationship with a community bank, credit union, or an experienced business lending officer can make all the difference.
A trusted business loan officer will:
Take the time to understand your business plan
Help you explore all funding programs
Identify the best business financing options for your unique needs
Assist with applications for business grants, loan programs, and alternative funding sources
Here in Colorado, community banks and credit unions like Bellco Credit Union, Partner Colorado Credit Union, and Colorado Enterprise Fund are excellent lending sources for small businesses in need of funding.
What do you need to qualify?
To qualify for a small business loan, you’ll typically need to provide:
1. Cash Flow
Lenders need assurance that you can repay the loan amount, so they’ll evaluate:
Annual revenue and projections
Bank statements
Tax returns
Business plan
2. Character
Your business credit and personal credit history will be considered, along with:
Legal documents (business registration, contracts, etc.)
Any past loan programs or business funding history
3. Collateral
Lenders may require collateral, which could include:
Commercial real estate
Equipment, vehicles, or inventory
Future cash flow contracts
Many business owners in Colorado Springs, Denver, CO, and beyond successfully secure loans for small business growth by working with business administration experts at local financial institutions.
How to find your lender
According to Drew, most businesses find business lenders either through word of mouth or online searches. I always recommend speaking with trusted contacts before applying online. Whether you’re in El Paso County, the San Luis Valley, or the Denver Metro Area, you’ll want to ensure the financial institution you choose aligns with your values and business needs.
For Colorado business loans, consider:
Colorado Lending Source (supporting startups and early-stage businesses)
CHFA (Colorado Housing and Finance Authority) for business-friendly funding programs
SBA loans Colorado for structured government-backed financing
Colorado Enterprise Fund for grants and funding solutions
And if you’re in Longmont, CO, I highly recommend making an appointment with High Country Bank! They specialize in business loans Colorado entrepreneurs need to succeed.
CHFA, SBA and government subsidies to help you
For additional support, look into:
SBA loans for federally-backed financing
Amber Grant for women-owned small businesses
Enterprise Fund programs for minority-owned businesses
State of Colorado business loan programs
Lenders can help identify grants, loans, and alternative funding sources that match your business plan.
The reali-tea is…
There’s no reason to fear a business loan! The right financial institution, business lender, or credit union Colorado entrepreneurs trust can provide you with the tools to fund your business and make it thrive.
If you happen to be looking for Longmont, CO Real Estate, I’m the Realtor for you! Contact me, Sarah Morrow, today, and let my tenacity move you! And if you are looking for a commercial or small business loan, be sure to contact High Country Bank.
Please subscribe to my YouTube channel to watch monthly episodes of Proper-Tea Time, my show on all things Real Estate in Longmont, CO and beyond. And for information on Longmont homes, check out my blogs Why Longmont? and Your Home’s Value.
Let my tenacity move you!
If you’re ready to explore houses for sale in Longmont or need a dedicated Longmont Realtor to list your home, I’m here to make the journey seamless. Check out my monthly vlog, subscribe to my YouTube channel, or dive into my blog for expert insights on market trends and topics like "Pulling a Building Permit is Simpler Than You May Think!" and "Perks of Home Ownership." Don't hesitate to reach out with any questions about homes for sale in Longmont, CO—I’m always here to help you find answers or connect you with the right resources.
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