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Colorado Lending Source | Aug. 20, 2015

At the beginning of 2003, Colorado Lending Source had 274 loans and over $97 million in its portfolio. The organization had made a name for itself from the Small Business Administration 504 loan program, yet new Executive Director, Mike O’Donnell, knew if Colorado Lending Source was to become the top Certified Development Company in the nation, product diversification was necessary.

The Community Reinvestment Fund (CRF) launched a CDC partnership funding pilot program in 2003 and selected Colorado Lending Source as one of nine CDC’s in the nation to participate. The CRF loan mimicked the SBA 504 loan, but could only be used for real estate and needed to fulfill community and economic objectives established by CRF. By the end of the 2003, Colorado Lending Source had approved four CRF loan projects.

Manufacturing company, Reata Engineering & Machine Works was one of the first CRF loans Colorado Lending Source approved and funded. Reata Engineering, established in 1993, specializes in the design and production of precision metal parts. In 2000, Reata Engineering purchased another manufacturing company. The two businesses were operating out of separate locations, until 2003 when the owner approached Colorado Lending Source to help finance the purchase of a 24,000 square foot warehouse in Englewood where the entire business could operate and expand in the future.

The loan project was complicated and unfit for a traditional SBA 504 loan, however it was the perfect candidate for the new CRF loan program as it satisfied the eligibility standards by assisting a manufacturer in expanding operations, increasing competitive capabilities, and creating new jobs. Today, Reata Engineering & Machine Works still occupies the building Colorado Lending Source and the Community Reinvestment Fund helped it secure.