The Northwest Colorado Innovation Center has launched a new “microlending revolving loan fund” to help entrepreneurs and small businesses in northwest Colorado, according to a news statement.

The fund, called the Northwest Catalyst Capital, is aimed at serving Routt, Moffat and Rio Blanco counties with support from seed funding from a “Just Transition Fund philanthropic grant” issued via the Northwest Colorado innovation Center, or, NCIC, according to the release.

“A survey of entrepreneurs and small businesses in our tri-county region revealed that access to financing represented a significant barrier to business growth,” said Tim Redmond, NCIC Chair and Routt County Commissioner. “This fund is a cornerstone in our region’s strategy to foster innovation and diversify the economy beyond coal.”

According to the news release, Northwest Catalyst Capital offers eligible small businesses and entrepreneurs loans ranging from $5,000 to $15,000 at a low, fixed interest rate of 5%, with a 1% origination fee.

“Loans are issued using a character-based lending approach, focusing on the borrower’s experience, community reputation, and business potential rather than on credit or collateral. Using the character-lending approach opens up financing options for borrowers who might not have the collateral, financial track record, or credit history to access traditional loans,” it adds.