Business financing in Costilla County.

Small business financing is any loan, line of credit, grant, or equity arrangement that gives a business owner the money they need to start, grow, or stabilize their operation. In Costilla County, that might mean a contractor buying a new truck, a property owner renovating a rental, or a family launching a small shop in San Luis — Colorado's oldest town.

Financing comes in several common forms:

• **Term loans** — A lump sum you repay in fixed monthly installments over a set period, usually 1–10 years.

• **Lines of credit** — Flexible borrowing up to a set limit, useful for covering seasonal gaps in cash flow.

• **Microloans** — Smaller loans, often under $50,000, designed for early-stage businesses or entrepreneurs with limited credit history.

• **SBA-guaranteed loans** — Loans made by local lenders where the U.S. Small Business Administration backs a portion of the risk, making lenders more willing to say yes.

• **Grants** — Money you do not repay, usually offered by state agencies or nonprofits for specific purposes like rural development or minority-owned businesses.

Federal programs like SBA loans are important context, but they reach you through local lenders — banks, credit unions, and CDFIs right here in southern Colorado. That local intermediary layer is what this guide is really about.

Costilla County sits in the San Luis Valley, one of the most economically underserved regions in Colorado. The county's median household income is among the lowest in the state, and many residents are self-employed — working in agriculture, construction, small retail, or property rentals. This context matters because local and state lenders have designed specific programs for exactly this environment.

**You may qualify if you:**

• Operate a sole proprietorship, LLC, partnership, or corporation based in Costilla County or serving the surrounding San Luis Valley.

• Have been in business for at least 6 months (some microloan programs accept startups).

• Can show some form of income — tax returns, bank statements, or even informal records that a CDFI loan officer can help you organize.

• Have an ITIN (Individual Taxpayer Identification Number) instead of a Social Security Number — several lenders in this region accept ITIN borrowers.

• Have imperfect or limited credit — CDFIs and credit unions often use character-based underwriting, not just credit scores.

**Sectors common in Costilla County that lenders understand:**

• Small-scale agriculture and ranching

• Residential and commercial construction contracting

• Property rental and small real-estate investment

• Tourism, hospitality, and outdoor recreation (near Fort Garland and the Culebra Range)

• Retail, food service, and artisan trades in San Luis and Blanca

If your business is informal or you're transitioning from day labor to licensed contracting, a CDFI loan officer — not a bank teller — is the right first conversation.

Every lender has its own checklist, but gathering these documents before you apply will save you time and show lenders you are prepared. CDFIs and credit unions are usually flexible about format — if you have questions, just call them and ask.

**Personal & Identity Documents**

• Government-issued photo ID (driver's license, passport, or consular ID)

• Social Security Number OR Individual Taxpayer Identification Number (ITIN)

• Proof of address (utility bill, lease, or bank statement)

**Financial Documents**

• Last 2 years of personal federal tax returns (IRS Form 1040, including Schedule C if self-employed)

• Last 2 years of business tax returns (if your business is a separate entity)

• Last 3–6 months of business and personal bank statements

• A current profit-and-loss statement (a simple spreadsheet is fine for microloans)

**Business Documents**

• Business license or registration with the Colorado Secretary of State

• EIN (Employer Identification Number) from the IRS — free to obtain at irs.gov

• Any contracts, invoices, or purchase orders that show current or upcoming revenue

• Lease or deed for your business location, if applicable

**For Real-Estate or Construction Loans**

• Property address and a recent appraisal or tax assessment

• Contractor's license (if applying as a licensed contractor)

• Lien waivers or project contracts for work in progress

**If You Don't Have Everything — Don't Stop**

CDFIs like Prestamos CDFI and Funding Partners (see Section 4) are trained to help you gather and organize documents. Missing paperwork is not an automatic disqualification.