Frequently Asked Questions

Who is SECED and what is it that you do?

Southeast Colorado Enterprise Development, Inc (SECED) was formed in 1988 under intergovernmental agreements between multiple county and municipal governments in southeast Colorado. The primary function was to administer the Southeast Enterprise Zone created through Colorado state statute in 1986. Currently SECED administers the multiple programs listed on our home page. Zone boundaries include Baca, Bent, Crowley, Kiowa and Prowers counties.

Can I get grant money from SECED?

The only grant funding available through SECED is for feasibility study projects. SECED has access to an option to incorporate a request for feasibility grant funds into CDBG contracts. The request must be coordinated at the time application is made with the Governors Office of Economic Development & International Trade. SECED contracts with OED on average every 24-36 months.

What do I need to do if I want EFT payments?

At any time throughout the duration of your loan you may opt to have EFT payments. Just let the office know and they will prepare the paperwork for you to sign. You will need to furnish a blank check to be voided and submitted to the bank. Payment date must be between the 1st and the 10th of each month.

Can I pay more than my scheduled payment amount?

Yes, you may pay any amount over and above the scheduled payment amount either on a routine basis or randomly. Any extra you pay will be applied to the note principal resulting in less interest paid over the period of the loan and the loan being paid off in a shorter time period.

What happens if I am unable to make a payment?

If you are unable to make a payment you should contact your loan officer and make arrangements to make it up. Failure to make a payment will result in being charged a $10.00 late fee and more interest being paid when the payment is made, causing the principal balance to be more than the amortization (payment) schedule.

Is there a penalty for paying my loan off before the maturity date?

No, the loan may be repaid at any time without a penalty.

What is the Revolving Loan Fund?

The Revolving Loan Fund (RLF) is an alternative (gap) financing method designed to help finance business projects that will positively impact the economic health of the communities within Baca, Bent, Crowley, Kiowa and Prowers counties. Individuals who meet eligibility requirements may apply.

What businesses are eligible?

For profit businesses, authorized to conduct business in Colorado, which are located within Baca, Bent, Crowley, Kiowa and Prowers counties.

How can I use the funds?

1. Purchase of an existing business.

2. Start-up costs for a new business.

3. Purchase of real estate.

4. Purchase of machinery & equipment, furniture & fixtures and inventory.

5. When used solely within an enterprise zone this exemption may also be claimed for purchases of:

6. Working capital.

What are some examples that funds may not be used for?

1. New construction.

2. Refinancing debt.

3. Payment of delinquent taxes.

4. Buying out existing owners, partners or shareholders.

5. Not-for-profit businesses.

How will my loan application be evaluated?

1. Ability to create or retain jobs filled by income-qualifying persons.

2. Management abilities.

3. Experience.

4. Financial condition of the business and its owners.

5. Cash flow shows the ability to repay loan.

6. Credit history of owner.

7. Owner's willingness and ability to invest in the business.

8. Sufficient collateral.

9. Community benefit.

10. Availability of funds.

What is the home rehabilitation program?

The home rehabilitation program is a program designed to help finance home rehabilitation projects within the communities of Baca, Kiowa and Prowers counties. SECED is an Equal Housing Opportunity Lender and makes every effort to further fair housing to all applicants who meet eligibility requirements.

What are some examples that funds may be used for?

1. Leaking roof

2. Inadequate electrical wiring

3. Inadequate plumbing

4. Inadequate heating.

5. Exterior siding replacement

6. Crumbling foundation

7. Sagging floors

8. Overcrowding

9. Code violations.

10. Handicap access

How will my loan application be evaluated?

1. Ability to repay loan

2. Credit history of homeowner

3. Amount of equity in home

4. Availability of funds

Can SECED advise people wanting to start their own business as to how to get started? What licenses, filings etc. are needed?

We do not have all that information but we can refer you to the following:
Scott Seslar with Lamar Community College Small Business Management (719)336-1583
Bruce Beardsley with Lamar Community College Entrepreneurship Program (719)336-1586
Bill Dutro, Small Business Development Center at Otero Jr. College in La Junta, CO. (719)384-6959