Low-interest loans between $5,000 and $10,000 for small businesses and nonprofits are available from First Southwest Community Fund and the Durango Creative District through their Creative Loan Fund.
First Southwest Community Fund and the Durango Creative District are partnering to offer the microloans to small businesses and nonprofit organizations in La Plata County.
Loans can go toward worker salaries, equipment, supplies, web development, training and certifications and more.
The Creative Loan Fund was launched in January 2020.
First Southwest Community Fund and the Durango Creative District in 2020 provided a total of $30,000 in funding to local entrepreneurs at a fixed 2.5% interest rate.
Creative Loan Fund recipient Bailey Barnes said, “As a professional musician, voice teacher and business coach for musicians, there aren’t a lot of funding opportunities that are created specifically for creative businesses such as mine.”
Barnes used her loan to pay for the platform where she hosts her online courses, hire a website designer to build her website, hire a business coach and take social media and email marketing courses.
The Creative Loan Fund benefits anyone producing, creating or administering their services locally. That includes, but is not limited to, businesses in visual arts, design, film and media, literary and publishing, culture and heritage, culinary arts and craft beverage, education, performing arts and artisan products.
First Southwest Community Fund’s Executive Director Cass Walker Harvey said a small loan can be the proper avenue for small-business owners in need of immediate access to capital.
“First Southwest Community Fund offers repayment plans up to 10 years,” she said. “If you were to take out a loan for $10,000 this year, you would be able to cover your business expenses while paying less than approximately $80 per month for access to this funding.”
Loan repayment plans and the annual percentage rate are determined on an individual basis.
Walker Harvey said taking out a loan at a fixed 2.5% interest rate is more affordable than putting businesses’ expenses on a credit card, which can have interest rates of 20% or higher.
Durango Creative District’s Executive Director Hayley Kirkman said, “We’re looking to get our local creative entrepreneurs the capital they need as simply and as quickly as possible. Our advisory committee can also refer applicants to local economic organizations that may be able to help provide them with valuable resources and technical assistance.”
parmijo@durangoherald.com
