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Bidders Conference: RFP
for Grant to Nonprofit
Lenders, March 13, 2017
OEDIT Staff
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Jeff Kraft, Director of Business Funding and Incentives
Frank Tamayo, Governor’s Office Procurement and
Contracting
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Rosy McDonough, Director Minority Business Office
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Virginia Davis, Coordinator Business Funding and Incentives
Rationale for RFP
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Start Ups and small businesses are responsible for a large percentage of
new jobs. Federal Regulations and other factors have made it harder for
Banks to make loans to small, start up businesses
Start up presence in the economy is down 50% over the last 40 years
There are market failures or gaps which restrict capital to small
businesses (regulations, information asymmetries, industry structure)
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Rural Colorado has unique challenges in accessing capital
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Desire to leverage, existing non-profit lenders’ platforms
Funding Amount Available
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At least $1.6M (Potential for more)
Additional funding contingent on 2017/18 budget
~5% ($80,000) for admin costs and rest for loans
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Grant versus Loans (RFP written as a grant but need EDC approval)
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Targeting 1 to 3 awardees
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Potential need to get funds paid by June 30, 2017
Key Dates
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RFP published March 1, 2017
Informational Meeting for Potential Bidders @ OEDIT on March 13, 2017
from 9am to 11am
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Written Inquiry Deadline March 20, 2017 (Frank Tamayo)
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RFP Proposal Submission Deadline March 31, 2017 (Frank Tamayo)
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Evaluation Committee Meeting with Potential Required In Person
Presentation 9am to 4pm April 7, 2017
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Economic Development Commission Meeting April 20, 2017
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Intent to award notice week of April 24, 2017
Logistics of Responding
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Send RFP Responses to Frank Tamayo, Procurement and Contract
Service, [email protected]
The RFP for OEDIT's Grant Opportunity is on the Colorado Procurement
Web Site
1) See link https://codpavss.hostams.com/webapp/PRDVSS1X1/AltSelfService
2) Then hit "public access" button on the left side of the page
3)Then search on the following "EDAA 2017000214" to find the RFP
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Follow the directions in the RFP
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Submit on time.
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Tips from
Frank Tamayo
Key Evaluation Criteria
Criteria
Organizational capacity to administer the program
Market failure or gap addressed by the program
Rural and state-wide lending
Leverage additional new capital for Colorado
Alignment with OEDIT strategies and programs
Proposed number of FTE jobs created or retained
Criteria
Weight
20%
20%
20%
20%
10%
10%
Organizational Capacity (20%)
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Organization’s existing loan programs history, success,
default rates
Readiness and ability to begin deploying funds quickly upon
receiving grant
OEDIT is looking for entities who can plug this capital into an
existing program with in place personnel, technical expertise
and systems to run a loan program.
Applicant financial strength.
Will applicant exist to revolve the funds indefinitely once the
initial grant is committed?
Market Failure/Gap Addressed (20%)
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How is your program innovative?
Demonstrate and explain market failure or market gap that
will be addressed by this program that is not currently
being addressed by the private sector or other non-profit
government programs.
Identify and quantify the demand for the program from
credit worthy borrowers (existing programs show need for
more capital than is currently or likely to be available)
One possible example: small loans for start up businesses
based on applicant character with payback from pro-formas
and limited collateral
Rural and State-Wide Lending (20%)
• Demonstrated track record to provide state-wide lending
including in rural areas
• Willingness to commit to specific metrics for rural areas
and main street businesses
• Ability to provide loans to other underserved groups
including minorities and veteran owned small businesses and
start ups.
Leverage New Capital (20%)
• How will you leverage grant from OEDIT to bring in other
new capital to Colorado from investors, philanthropic or
federal sources.
• Will this grant serve as matching funds to other capital
providers?
• How certain are these matching sources and are they
dependent on this grant from OEDIT?
• Explain in detail
Alignment with OEDIT (10%)
• Willingness and ability to align loan-making with OEDIT strategies
and programs such as CDBG revolving loan funds, outdoor recreation
and tourism offices, SBDC, Minority Business Office (MBO), Advanced
Industries, Creative Districts and Creative Industries Programs, Historic
Preservation Tax Credits. Blueprint 2.0 and others–-- Explain How
• Example: Referring your loan applicants to Small Business
Development Centers for packaging loan application and consulting
• Align with OEDIT partners such as Department of Local Affairs,
Colorado Energy Office, Federal Economic Development
Administration
• Agree to follow up on referrals from OEDIT and report back. Loans
decisions to be made on underwriting criteria
Proposed Job Impact (10 %)
• A key goal is to help support existing and create new jobs.
• How will loan program target small businesses with the
ability to catalyze new job creation as opposed to small
lifestyle businesses that only support a few employees and
don’t have growth potential ?
• Quantify forecast of loans made and the impact in
supporting existing jobs and helping to create new jobs.
• Report back to OEDIT on jobs supported and created
regularly.
Rules for Loans
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Max Loan Size $100,000 per recipient
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Max Interest Rate (prime +2% or similar)
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Max loan term 8 years
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Minimum % of loans to rural**** businesses: 40%
****Rural is defined as all state counties except 11 core Front
Range Counties: Weld, Larimer, Boulder, Broomfield, Adams,
Jefferson, Denver, Arapahoe, Douglas, El Paso, Pueblo
Awardee Selection Process
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Review panel of several OEDIT Division Directors & Staff plus
representatives from Department of Local Affairs (DOLA),
Colorado Department of Agriculture, Colorado Housing Finance
Authority (CHFA)
Applications will be scored and discussed by Panel which will
create recommendations for EDC.
Applicants should be ready to make short presentations and
answer questions in person on April 7, 2017 in front of Panel
Final approval by Colorado Economic Development Commission
(EDC) on April 20, 2017.
Contracting Process
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Awards announced April 24
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Finalize contracts by early June and disburse funds by June 30.
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Contract lasts for 5 years with possible extension.
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Regular detailed reporting requirements (first few loans individually)
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Customer agrees to make disburse funds quickly or return grants and to
make periodic progress reports.
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Customers retain capital at the end of contract (pending EDC approval)
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Moral commitment to use funds for revolving loans post contract
Questions
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Thank you for attending and assisting small businesses
in Colorado
Written questions to [email protected] by
March 20, 2017