FORT COLLINS — First National Bank and its affiliates have provided $3 million to two Denver-based nonprofits that provide loans to start, operate and grow small businesses statewide.
First National Bank provided, through an Equity-Equivalent Investment, $1 million to Accion in Colorado and $2 million to the Colorado Enterprise Fund.
“First National Bank is proud to further support local economic growth and employment in Northern Colorado,” said Mark Driscoll, FNB’s Colorado market president. First National Bank invested $2 million with Accion in Colorado between 2013 and 2014.
An Equity-Equivalent Investment is basically a loan in which recipients make quarterly or annual low-interest payments for the use of the money, and the investor, or bank in this case, won’t call in the loan. The bank may call in the loan, but not until at least 10 years have passed. The spirit of the financial tool is to simply make the funds available to nonprofits that can’t borrow money through traditional methods to provide loans to their clients.
Accion in Colorado offers loans, along with training and other support services, to those who want to start, operate or expand a small business. The $1 million will be used as loan funds to support businesses in Adams, Boulder, Jefferson, Broomfield, Weld and Larimer counties.
The Colorado Enterprise Fund is a community development financial institution that provides small-business financing to low-to-moderate-income populations. CEF specializes in loans up to $500,000 for small businesses and startups unable to receive traditional bank financing. This $2 million will be used for lending activities in Adams, Boulder, Broomfield, Jefferson, Larimer and Weld counties.
First National Bank is a subsidiary of First National of Nebraska. First National of Nebraska is the largest privately owned banking company in the United States. First National of Nebraska and its affiliates have more than $21 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.