Senate committee advances updates to Climber small-business loan program to speed capital

Sponsors told the Senate Finance Committee that House Bill 26-1003 modernizes the Climber small-business loan program to make state-backed capital easier to marshal and quicker to deploy for Colorado entrepreneurs.

Senator Marchman and Senator Kolker said the bill lowers the program’s private-match threshold (currently a statutory 4:1 requirement) to a permissive ratio as low as 1:1 so tranches of capital can be formed faster and more lenders — including CDFIs and credit unions — can participate. The bill also transfers $5 million into the Colorado startup loan fund targeted for microloans to very small businesses, particularly in rural or underserved communities.

Why it matters: Treasurer Dave Young, who chairs the Climber Oversight Board, called the program an important evergreen tool that began during the COVID-19 pandemic and continues to provide accessible capital. He also warned that transfers out of Climber capital to fill budget gaps would need a plan to restore funding in the future to preserve long-term sustainability.

Operational detail: Sam Taylor, senior program manager for Climber at the Office of Economic Development and International Trade, described past tranches (one of $25 million and another of $15 million) and current outcomes: the program helped deploy just under $35 million in small-business loans and reported roughly a 12% loss rate when counting late accounts and charged-off loans. Taylor said interest and principle repayments first go to contributors and that the program should begin revolving capital back early next year if losses hold steady.

Support and votes: Representatives of CDFIs, the Boulder Chamber and program administrators testified in favor. Senator Kolker moved HB261003 to the Committee on Appropriations with a favorable recommendation; sponsors emphasized the program’s track record (thousands of businesses touched and jobs supported) and urged the committee to preserve Climber as a deployable capital tool. The bill will advance to appropriations for further consideration.