Gap Revolving Loan Fund

The Gap Revolving Loan Fund helps small businesses access the gap financing they need to start, grow, or improve their operations. When a bank cannot fund the entire project, this program can step in to cover the remaining “gap,” making it possible for more businesses to move forward with an affordable loan.

The program focuses on supporting job creation, strengthening neighborhoods, assisting underserved entrepreneurs, and helping businesses in areas facing economic challenges.

Depending on your location and type of business, the City may provide a portion of your project costs, offering loans between $51,000 up to $450,000.

The City may cover:

• Up to 40% of project costs for all small businesses
• Up to 75% for businesses operating in NEST neighborhoods
• Up to 90% for Denver Legacy Businesses 

Please review the information below to make sure your business meets the eligibility requirements for the Gap Revolving Loan Fund.

This program supports business projects—such as renovations, expansions, equipment purchases, or opening a new location—that need more financing than a bank can provide. To qualify, you must show that your project is ready, financially viable, and provides benefits to Denver residents.

1. Financial Requirements

Before applying, you must secure as much private funding as possible. This helps show the City what part of your project still has a “gap.”

Businesses must have the following minimum percentages covered by private commitments at minimum: Minimum private financing levels are:

• At least 60% of total project costs for all small businesses must come from private commitments
• At least 25% of all project costs for businesses in NEST neighborhoods must come from private commitments
• At least 10% of project costs for Denver Legacy Businesses must come from private commitments
  
  Additional financial requirements 
• City funding is limited to a maximum of $450,000
• You must show the City loan is necessary (bank can’t cover full costs, the investor return is too low, or site‑related costs make the project less competitive)
• You must show you can repay the loan and provide collateral
• Loan terms will be structured to support reasonable returns and sustainable cash flow

2. Project Requirements

Your project should support business growth and benefit the community. Eligible project examples include:

• Renovations or new construction
• Equipment purchases
• Expanding operations or opening a new location
• Improving an existing commercial space
  
  Additional project expectations:
• Projects must be located in Denver
• Project plans must clearly show how funds will be used
• Construction projects funded by the City may require payment of prevailing wage

3. Eligible Use of City Funds

City loan funds may be used for:

• Real estate acquisition
• New construction
• Building rehabilitation
• Equipment purchases
• Working capital

City funds cannot be used to refinance existing debt.

4. Job Requirements

Your project must help create or keep jobs for Denver residents. These jobs should:

• Be open to low‑ and moderate‑income workers
• Be entry‑level or include training for entry‑level employees
• Aim to provide long‑term, full‑time equivalent jobs with career advancement

  
  Additional job expectations:

• Recruitment may need to target certain Denver neighborhoods

Project sites should have adequate access to public transportation.

Before starting your application, please make sure you have the items listed in the quick checklist below. Applicants who begin without these documents are usually unable to complete the process.

You will need:

• Basic business information
• Details about your project (location, costs, and timeline)
• Proof of private financing and commitment letters
• Financial documents (tax returns, statements, projections)
• Identification and required forms
• Additional documents if your project involves real estate or construction

See the detailed list below for exact requirements.

1. Business Information

• Legal business name, DBA, EIN, and contact information
• Business description and NAICS code
• Owners with 20%+ ownership
• Resumes for key management
• Organizational documents (Articles, Bylaws, Good Standing, Partnership Agreements)
• Description of current operations, goals, and facility

2. Project Details

• Description of your project (renovation, expansion, equipment, new location)
• Current and proposed address
• Building details: size, condition, zoning, and ownership
• Construction plans, cost estimates, and timeline (if applicable)
• For food businesses: kitchen use history and capacity

3. Funding Information

• Sources and uses of funds
• Detailed project budget
• Commitment letters from lenders/investors
• Decline letters from lenders (if applicable)
• Evidence of the financing gap
• Federal funding details, if used

4. Financial Documents

• Business tax returns (3 years)
• Current and annual P&L and balance sheets
• Personal tax returns (3 years) for owners with 20%+
• Personal financial statements for all owners/guarantors
• Cash flow projections for at least one year
• Recent credit report (less than 3 months old)
• List of past due government obligations

5. Additional Required Documents

• Leases or purchase contracts
• Appraisals for real estate/equipment
• Phase I Environmental Site Assessment
• Permitting documents or Certificate of Occupancy
• Construction contracts and drawings
• Job creation/retention form
• Schedule of business debt
• W9 for borrowing entity
• Government issued ID
• SAM/UEI registration
• Credit authorization and tax affidavit

Before starting your application, please review the Checklist section to make sure you have all required documents ready. Most applicants who begin without these items are unable to complete the process.

We also recommend contacting our team at DEDOSBLoans@denvergov.org before applying. We can help confirm your eligibility, answer questions about your project, and guide you through the next steps.

Apply Now! 

Please note: We will analyze the loan application and advise the applicant of any deficiencies which need to be addressed. Once an application is complete and meets the criteria for the program, we will recommend the application to the loan review committee for approval.

The Revolving Fund “Gap” loans financing available to you varies with factors such as your business ownership, where the business is located, and how much private commitment you have secured. Revolving fund "gap" loans can vary from $51,000 to $450,000. 

Interest rates are based upon a determination of what is necessary and appropriate for the transaction. Typically, the private financing is made available at market rates, while DEDO's participation is at a below market rate. 

Preliminary approval of an application usually takes two weeks from the submittal of a complete application, including firm commitments of private financing. The processing of a formal city loan agreement and the closing of the loan takes approximately 12 weeks. 

We look at the economic feasibility and evidence of repayment ability of the proposed project and benefits to the city (neighborhood impacts, creation of jobs, and so on).