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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0383.01 Jed Franklin x5484 HOUSE BILL 26-1003
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
CONCERNING MODIFICATIONS TO THE SMALL BUSINESS RECOVERY AND101
RESILIENCY LOAN PROGRAM.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Currently, the purpose of the small business recovery and
resiliency loan program (program) is to support the state's recovery from
the economic crisis caused by COVID-19 by supporting Colorado small
businesses recovering from COVID-19. The bill modifies the purpose of
the program to supporting Colorado's small businesses through the
program.
HOUSE
Amended 3rd Reading
February 10, 2026
HOUSE
Amended 2nd Reading
February 9, 2026
HOUSE SPONSORSHIP
Ricks and Camacho, Bacon, Boesenecker, Carter, C lifford, Duran, English, Froelich,
Goldstein, Lieder, Lindsay, Ma rtinez, Mauro, McCluskie, McCormick, Nguyen, Rutinel,
Stewart K., Titone, Valdez, Woodrow
SENATE SPONSORSHIP
Kolker,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
Currently, money in the small business recovery and resiliency
fund (fund) may be used for specified purposes if the money from the
fund is matched by money provided by other sources at a ratio of $1 of
money from the fund to $4 of money from other sources. The bill changes
this ratio to $1 from the fund to $1 from other sources. Once the money
from the fund is matched by other sources and comprises a tranche, the
bill specifies that the money from the tranche may be used for loans or to
purchase participation interest in loans for businesses as determined by
the program oversight board (board), including working capital and the
purchase of equipment.
Currently, principal and interest payments on a loan may be
deferred for up to one year for circumstances of hardship created by the
COVID-19 pandemic or based on ongoing economic conditions. The bill
allows a deferral for circumstances of hardship and repeals the
requirement that the hardship must be caused by the COVID-19 pandemic
or ongoing economic conditions.
Currently, each tranche is subject to an initial period of time, as
determined by the board, in which a portion of the money from the fund
is allocated to each county, as determined by the board, based on
specified criteria or a statutory formula. Currently, the money allocated
to each county must be reserved for applications from eligible borrowers
located in that county for the initial period of time. The bill repeals the
requirement that the money is reserved for the initial period of time and
that the money is allocated to a county. The bill requires each tranche of
loan funding to be used to fund businesses across the state over the
duration of the program. The program will track the distribution of capital
to counties.
The bill requires the state treasurer to transfer $5 million from the
fund to the Colorado startup loan program fund on June 30, 2026.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-48.5-605, amend2
(1)(b), (4)(a), (4)(b) introductory portion, (4)(b)(IV), and (4)(c) as3
follows:4
24-48.5-605. Small business recovery and resiliency loan5
program - creation - requirements - oversight.6
(1) (b) The purpose of the loan program is to support the state's7
recovery from the economic crisis caused by COVID-19 through8
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leveraging private investment to support Colorado small businesses1
recovering from the crisis caused by COVID-19 by making loans,2
acquiring participation interest in loans, leveraging private small business3
lending through the Colorado credit reserve program, or other activities4
that accomplish the same purpose. The loan program is also designed to5
support resiliency for small businesses as new challenges emerge. The6
loan program may only make loans directly if federal or state bank7
regulators prohibit the banking industry from originating loans for the8
loan program.9
(4) Any contract for the administration of a loan program must10
include the following terms in order to receive money provided by the11
office pursuant to subsection (3) of this section:12
(a) Except for money contributed to the Colorado credit reserve,13
the money from the small business recovery and resiliency fund provided14
by the office in a single tranche may not be committed pursuant to a15
contract relating to a loan program until money is committed pursuant to16
a contract relating to a loan program from other sources at a ratio of at17
least four dollars ONE DOLLAR from other sources for each one dollar18
provided by the state from the small business recovery and resiliency19
fund. If a loan program manager does not secure sufficient investments20
from other sources to meet this requirement within the time allowed by21
a contract, the money provided by the state must be returned to the small22
business recovery and resiliency fund.23
(b) Except for money contributed to the Colorado credit reserve,24
once the money in a tranche is matched in accordance with subsection25
(4)(a) of this section, it must be used to make loans or purchase26
participation interest in loans for BUSINESSES AS DETERMINED BY THE27
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OVERSIGHT BOARD , INCLUDING working capital including AND the1
purchase of equipment. to eligible borrowers, or other activities that2
accomplish the same purpose The oversight board shall consult with3
lending industry leaders and representatives of small businesses with4
regard to subsections (4)(b)(I) to (4)(b)(VI) of this section. Each loan5
must be subject to the following terms:6
(IV) Principal and interest payments may be deferred for up to one7
year, as determined by the oversight board, with the unpaid interest being8
capitalized. Deferrals must be limited to circumstances of hardship.9
created by the COVID-19 pandemic or based on ongoing economic10
conditions11
(c) (I) To ensure geographic equity, each tranche of loan funding12
must be subject to an initial period of time in which a portion of the13
money is allocated to each county on a basis proportional to the county's14
share of small businesses relative to the state, the county's share of small15
business employees relative to the state, the county's share of small16
business personal property relative to the state, or other similar metrics as17
determined by the oversight board, or based on a formula established18
under subsection (4)(c)(IV) of this section. The money allocated to each19
county must be reserved for applications from eligible borrowers located20
in that county for the initial period of time. For the purposes of this21
subsection (4)(c), an eligible borrower is considered to be located in the22
county in which it has its principal place of business, as reflected in its23
most recent filing with the secretary of state or subject to such other24
documentation as the oversight board establishes. The oversight board25
shall determine the amount of time in which the money in each tranche26
is subject to a geographic restriction under this subsection (4)(c)(I) 27
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THE LOAN PROGRAM SHALL BE USED TO FUND BUSINESSES ACROSS THE1
STATE OVER THE DURATION OF THE PROGRAM AND, IN ACCORDANCE WITH2
SECTION 24-48.5-604 (8)(d), SHALL MAINTAIN TARGETS AND SUPPORT3
BUSINESSES LOCATED IN RURAL COUNTIES AND BUSINESSES OWNED BY4
WOMEN, MINORITIES, OR VETERANS. THE PROGRAM SHALL TRACK THE5
DISTRIBUTION OF CAPITAL TO COUNTIES.6
(II) Once the time period established by the oversight board under7
subsection (4)(c)(I) of this section has passed, all money remaining in the8
tranche is available to eligible borrowers on a statewide basis.9
(III) For money contributed to the Colorado credit reserve, the10
oversight board may waive the requirements of this subsection (4)(c) or11
establish alternative geographic distribution requirements or targets.12
(IV) For any tranche of loan funding, the oversight board may, in13
its discretion, establish an alternative formula for the allocation of money14
to counties for purposes of subsection (4)(c)(I) of this section that15
accounts for how affected each county has been by the COVID-1916
pandemic and its impacts or based on ongoing economic conditions.17
SECTION 2. In Colorado Revised Statutes, 24-48.5-608, add18
(2)(d) as follows:19
24-48.5-608. Small business recovery and resiliency fund -20
repeal.21
(2) (d) (I) O N JUNE 30, 2026, THE STATE TREASURER SHALL22
TRANSFER FIVE MILLION DOLLARS FROM THE SMALL BUSINESS RECOVERY23
AND RESILIENCY FUND TO THE COLORADO STARTUP LOAN PROGRAM FUND24
ESTABLISHED IN SECTION 24-48.5-131 (9).25
(II) THIS SUBSECTION (2)(d) IS REPEALED, EFFECTIVE JULY 1, 2027.26
SECTION 3. Safety clause. The general assembly finds,27
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determines, and declares that this act is necessary for the immediate1
preservation of the public peace, health, or safety or for appropriations for2
the support and maintenance of the departments of the state and state3
institutions.4
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