Colorado’s Legislative Session Delivers Important Wins for Small Businesses Hurt by COVID-19

For Immediate Release: 
Tuesday, June 16, 2020

State establishes two new grant and loan programs for businesses left behind by federal stimulus package, but several critical issues remain unresolved

Denver, CO – As the 2020 legislative session comes to an end, the Colorado State Legislature passed several key pieces of legislation to help small businesses recover from the COVID-19 economic crisis and better compete with larger businesses in the future. Two bills that passed (SB20-222 and HB20-1413) will establish new recovery loan and grant programs for small businesses left behind by federal stimulus programs, like the Paycheck Protection Program (PPP).   

“Since the onset of the pandemic, we have warned that the federal response to the small business crisis could not sustain a full recovery. Three months on, many Colorado small businesses remain underfunded or un-helped by PPP,” said Hunter Railey, Director of Colorado at Small Business Majority. “The Colorado legislature recognized these gaps and has taken matters into its own hands by establishing two new programs to help small businesses get back on their feet. Through a new loan and grants program, underserved businesses—like those owned by women, people of color, or those located in a rural area—that did not receive a federal loan will be eligible for a grant or to apply for additional capital. This is the type of forward-thinking assistance that businesses need in the wake of the pandemic, and these programs will directly benefit the businesses that are struggling the most. By receiving a lump sum payment that is not tied to payroll, business owners will be able to utilize the funds in a way that will best help their business recover and adapt to our new normal. Federal lawmakers would be wise to look at Colorado’s grants program as a model for how to better serve struggling businesses. With these new plans in place, Colorado’s economy will be able to make a stronger and more sustainable recovery.” 

During the abbreviated session, the Colorado Legislature passed a number of other measures that will greatly benefit small businesses now and in the future. Among the wins are: 

  • Establishing a program to close Colorado’s retirement savings gap: With the passage of the Secure Savings Program, Colorado joins a small handful of others in adopting a state-run retirement savings plan. Secure Savings will operate as a public-private partnership allowing employees to contribute to an individual retirement savings account through modest payroll deductions. This will help small employers offer valuable benefits to their employees without the administrative or cost burdens associated with employer-run plans.
  • Stable funding for Colorado’s reinsurance program: The rising cost of healthcare is one of the top concerns among small business owners. In Colorado, the state’s reinsurance program has gone a long way in helping to reduce premiums on the individual marketplace by 20%. However, funding for this program has been in jeopardy for some time now. The passage of SB20-215 will extend the program for five more years by establishing a system for stable, sustainable funding. 
  • Greater support for rural small business development: This session the legislature also took two important actions to better support rural small businesses. First, the legislature passed a five-year extension of key programs that are designed to help retain and spur new jobs in rural areas. Additionally, a new grants program was established to support projects that create new jobs or promote more diversity in rural communities. Both programs will be critical to ensuring that small businesses in these areas have the tools and resources necessary to recover from COVID-19.   

While Small Business Majority is pleased with a number of the actions taken this session, the legislature left a number of issues unresolved. Among those items that need to be addressed immediately next session are: 

  • Enacting commercial eviction protections: Approximately 70% of small businesses in Colorado rent their place of business, and as a result of the pandemic 62% fear that they will have trouble making rent in the near future. Currently, commercial tenants in Colorado do not have protections in state law, and struggling small businesses could face devastating impacts without commercial eviction protections. In many cases, commercial leases require a personal guarantee; therefore, if evicted due to down revenue from the pandemic, Colorado’s entrepreneurs could face both business and personal bankruptcy. 
  • Addressing the high cost of healthcare: Before the pandemic, the legislature was poised to take action on a public option. With some of the highest individual healthcare costs in the country, affordability is a major barrier for Colorado’s entrepreneurs and their employees. A public option would ensure that Colorado’s entrepreneurs and small business employees have greater access to more affordable coverage choices. Facilitated through a public-private partnership, a public option is expected to lower premium costs by 9% to 18%, while ensuring that taxpayers are not left to foot the bill. 
  • Protecting small businesses from predatory lenders: As the impacts of the pandemic continue in the months ahead, predatory lending will continue to be an issue as small businesses struggle to maintain cash flow and look for other financing opportunities to keep their businesses afloat. Small businesses need accessible, safe forms of capital to recover from this crisis, and this is most apparent for women and minority-owned businesses.

About Small Business Majority

Small Business Majority was founded and is run by small business owners to ensure America’s entrepreneurs are a key part of a thriving and inclusive economy. We actively engage our network of more than 65,000 small business owners in support of public policy solutions and deliver information and resources to entrepreneurs that promote small business growth. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers. Learn more about us on our website and follow us on TwitterFacebook and Instagram.

Press State: 
CO