SB20-054 Summary

• Creates a rural development grant program administered by the Colorado Office of Economic Development to support early-stage rural businesses and economic development organizations in rural areas.

• Eligible early-stage rural businesses must be at the seed stage of capital financing, have raised less than $500,000 in third-party capital, and be primary employers with potential to export goods or services outside their rural area.

• Grant recipients must secure matching funds equal to at least one-third of the grant amount from nongovernmental sources, with maximum grants of $150,000 per recipient per year.

• Grants to businesses may be used for developing prototypes, proof of concepts, or proof of business models; grants to organizations may be used for programmatic expenses.

• Program is funded with $2.5 million transferred from the general fund on July 1, 2020, and automatically repeals on July 1, 2025.