Colorado General Contractors SBA EIDL Disaster Loans for Construction and Remodeling Industry Companies in CO

Colorado Construction and Remodeling Industry SBA EIDL

In Colorado, construction contributed $21.9 billion (5.6%) of the state’s GDP of $390.3 billion. There were 706,000 construction firms in the U.S. in 2017, including 18,352 in Colorado.

The Construction and Remodeling Industry is one of the most important sectors of the economy. The Small Business Administration (SBA) understands that and has put in place a disaster loan program specifically for General Contractors.

Colorado Construction and Remodeling SBA EIDL Disaster Loans for General Contractors

The SBA’s Economic Injury Disaster Loan (EIDL) program offers up to a $2 million increase in loans to help businesses affected by a declared disaster. General Contractors can use these loans to pay for operating expenses, such as employee salaries, rent, and utility bills.

In addition, EIDL funds may be used to meet any disaster-related need such as debris removal, emergency protective measures, repair/rebuilding expenses, or property replacement. Expenses not directly related to repairing damage from a disaster cause would not be considered “eligible” for this guidance.

If you have suffered a substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA EIDL:

  • Small business
  • Small agricultural cooperative
  • Most private nonprofit organizations

Colorado Types of General Contractors

Here are some common types of general contractors that can apply for the SBA COVID EIDL Disaster Loan Program.

  • Colorado General Contractors
  • Colorado Excavation Contractors
  • Colorado Concrete Contractors
  • Colorado Framing Contractors
  • Colorado Steel Contractors
  • Colorado Window and Door Contractors
  • Colorado Electrical Contractors
  • Colorado Plumbing Contractors
  • Colorado Heating, Ventilation, and Air Conditioning (HVAC) Contractors
  • Colorado Fire Alarm and Sprinkler Contractors
  • Colorado Roofing Contractors
  • Colorado Insulation Contractors
  • Colorado Drywall Contractors
  • Colorado Taping Contractors
  • Colorado Plaster Contractors
  • Colorado Flooring Contractors
  • Colorado Finish Carpentry Contractors
  • Colorado Painting Contractors
  • Colorado Masonry Contractors
  • Colorado Landscaping Contractors

Contractor Eligibility for SBA EIDL Disaster Loans for General Contractors in CO

To be eligible for an EIDL loan, a business must have been adversely affected by a declared disaster. This could include lost revenue due to the disaster, increased costs related to the disaster, or damage to the business’s physical property.

  • Substantial economic injury means the business is unable to meet its obligations and pay its ordinary and necessary operating expenses.
  • EIDL provides the necessary working capital to help small businesses impacted by a disaster survive until normal operations resume.  
  • EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.

SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. The loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.

A business may qualify for, both, a Colorado SBA EIDL and a physical disaster loan.

The maximum combined loan amount is $2 million. A separate SBA Disaster Assistance program known as business physical disaster loans covers property damage.

Use of Proceeds

  • Working capital and normal expenses such as the continuation of health care benefits, rent, utilities, and fixed debt payments
  • Payroll and benefits for employees. See the Colorado Employee Retention Credit program for employee tax credits for your business in Colorado.

Terms

  • The interest rate will not exceed 4%.

Maturity

  • Up to 30 years, with repayment term to be determined by the ability to repay the loan
  • No prepayment penalty or fees

Collateral Requirements

  • Required for loans over $25,000
  • Real estate is the preferred collateral. Loans of $200,000 or less will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and a value equal to or greater than the amount of the loan.

How to Apply for a Colorado SBA EIDL Loan for General Contractors?

  • Apply online for a Colorado SBA disaster assistance loan. Colorado SBA will send an inspector to estimate the cost of damage, once your application is completed and submitted.
  • Complete, sign, and date IRS Form 4506-T with your application, giving permission for the IRS to provide SBA with your tax return information.
  • The COVID EIDL deadline for Colorado Contractors that have never applied for an EIDL loan yet, is December 31, 2021. Reconsiderations and Increase Requests for Colorado Contractors continue into 2022.

Additional Information on Colorado Construction and Remodeling SBA EIDL Disaster Loans for General Contractors

Contact the SBA Disaster Assistance Customer Service Center at:

Phone: 800-659-2955
TTY: 800-877-8339
Email: [email protected]

Application Process for Colorado Construction and Remodeling SBA EIDL Disaster Loans for General Contractors

New Loan

If the small business is a first-time COVID EIDL applicant, complete the following steps to apply:

  1. Confirm eligibility (review FAQs and below Loan Eligibility section).
  2. Complete Intake Form.
  3. Sign up to create a portal username via an SBA email invite.
  4. Complete portal steps and submit relevant documents.
  5. Respond to SBA requests for signature, confirmation, and documents.

The average SBA decision timeline for $500,000 or under is several weeks.

Increased Loan

If the small business has already obtained a loan via COVID EIDL before and does not already have an outstanding loan increase application in process, complete the following steps to apply for a loan increase:

  1. Confirm Eligibility.
  2. Log onto Account on SBA Portal (do not apply for another loan) to submit loan modification.
  3. Complete portal steps and submit relevant documents.
  4. Respond to SBA requests for signature, confirmation, and documents.

The average SBA decision timeline for $500,000 or under loans is several weeks. The average SBA decision timeline for greater than $500,000 loans is one and a half months.

Required Documents for Colorado Construction SBA EIDL Disaster Loans for General Contractors

  • For loans of all sizes, federal income taxes, IRS Form 4506-T, and ODA Form P-022-Standard Resolution are required.
  • For loans greater than $500,000, the following additional documents will be solicited:
    • SBA Form 2202 – Schedule of Liabilities
    • SBA Form 413 – Personal Financial Statement
    • List of Real Estate Owned (template on intake form)
  • For all loans, additional verification documentation may be solicited by the SBA through the review process

Loan Eligibility for General Contractors

To obtain a loan via COVID EIDL, small business owners must meet the eligibility requirements.

Additionally, below are the credit score requirements:

  • $500,000 or under: 570
  • greater than $500,000: 625

Small businesses must qualify for a certain loan amount by completing the economic injury formula which takes into account two years’ worth of revenue and the cost of goods sold to produce an eligible loan amount.

Colorado General Contractors Conclusion and Summary

The Small Business Administration (SBA) is committed to helping Colorado Contractors and small businesses impacted by the COVID-19 pandemic. The agency has established the Economic Injury Disaster Loan (EIDL) program to provide financial assistance to qualifying businesses including the Construction and Remodeling sector in CO.

The COVID EIDL deadline for Colorado Contractors that have never applied for an EIDL loan yet, is December 31, 2021. Reconsiderations and Increase Requests for Colorado Contractors continue into 2022.

Colorado General Contractor and Construction Help: Get SBA Loan Assistance for Your Contractor Business

Was Your Colorado General Contractor SBA EIDL Loan Denied?

Has your Construction and Remodeling SBA EIDL loan been denied for your CO Contractor business?

We can assist you in filing for an SBA EIDL loan reconsideration appeal for your Contractor business.

Schedule Your Free Disaster Loan Consultation to see if we may be able to help your Contracting business with the SBA Loan Reconsideration Process in Colorado.

Need an Increase on Your Colorado General Contractor SBA EIDL Loan?

Did you already receive a Colorado SBA EIDL loan for your Construction and Remodeling business?

We can assist your business in requesting additional SBA EIDL loan funds through the increase request process.

Schedule Your Free Disaster Loan Consultation to see if we may be able to help your Contractor business with the SBA Increase Request Process in Colorado.

Cover Image Credit: 123RF.com / NexusPlexus. / Disaster Loan Advisors.

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