 Hello, and welcome to another episode of the Savvy Entrepreneur. Today, we'll be speaking with Scott Romano, who is with the Gap Fund through Energize Colorado. I learned about Energize Colorado from Brad Feld when I did my interview with him a few weeks ago. Without further ado, here is Scott Romano. Scott, how are you doing this morning? I'm doing very well, Talis. How are you? I'm doing great. Thanks for asking. I appreciate you taking the time this morning to speak with me and our guests. So, let's start off with what the Gap Fund is. Yeah. Well, Energize Colorado is a nonprofit that was started right at the beginning of this pandemic by a group of really incredible Denver business leaders, including Brad Feld, Mark Nager, Wendy Lee, Eric Matissek, Kent Theory, and really this was meant to empower Colorado's small businesses by not only giving them the foundational and financial support to survive this pandemic, but to give them the protections and sort of the thought leadership that's necessary going into this next major economic shift. When you've got mom-and-pop shops competing with Amazon Prime, it really leads to a potentially uncompetitive environment where one needs to be. And so we're interested not only in the recovery immediate to this pandemic, but using this as sort of a catalyst or a jumping off point to spurring economic growth and innovation and really making sure Colorado is at the top of the list nationally when it comes to innovation. I love those objectives. So how is the program doing? What stage are you guys at right now? Yeah. So we're right now in sort of our first phase, which is stabilize and reopen. And so part of that is this Gap Fund, which is launching on Monday, August 31. It is a $25 million fund to provide up to $35,000 in financial assistance for Colorado's small businesses with less than 25 full-time employees. Additionally, we're prioritizing groups that traditionally struggle to access financial capital at this level. And so that's rural communities, minority-owned businesses, women-owned businesses, and veteran-owned businesses. And so we really have a priority to bring that money to the communities where it can have the most impact. And like the name says, there is a gap in funding. And that's what we're here to sort of provide and fill. Great initiative. And I love the focus to the people who aren't necessarily receiving a lot of the funds through traditional investment vehicles, right? So great job on that. So let's talk about the application. What is required to apply to the Gap Fund? Yeah. So I want to highlight one thing sort of going into this, which is the payroll protection program really required a strong relationship with your bank if you were a small business. And for a lot of these businesses in Colorado, that relationship with their bank is not something they had going into this pandemic. And it was incredibly hard to facilitate one at the start. And so we've made this application incredibly user-friendly. We provide it in a handful of different languages. And really the application should only take you about 20, 30 minutes to fill out if you have everything ready. The biggest question is to sort of ask small businesses to prove the economic hardship of COVID-19. Either it's decreased your revenue, it's increased your expenses. And so we're really eager to just give businesses as many opportunities to tell that story. So there's very few document requirements, almost all of which a business would have readily available. But really there's a storytelling element to it. And it's recognizing the impact of these businesses in their communities and making sure that we're giving the money to where it can be the most impactful. That's great. On a side note with the TPP, when I applied for it through Silicon Valley Bank, my bank, they basically, they straight up told me that I was too small and that they were spending, they're going to spend the resources on the larger companies. And once they were done, they're like, oh, by the way, we're not taking any more applications. So it's great that you guys are doing something that the PPP wasn't able to do. Yeah, we saw, we saw a lot of pretty positive feedback for the PPP program in terms of exactly like you said, those larger businesses. But one of the huge driving factors as to why we are focusing on what we're sort of calling micro businesses, that's the less than 25 full time employees, is truly because they did not get that capital from the PPP and $35,000 can be the difference between opening your door tomorrow and not. So that's why we're doing it. Again, that's great. So let's say a company does get these funds. Is it a grant? Is it a loan? Is it an equity investment? What is it? Yeah, so we're actually doing a mix of grants and low interest loans. So we've received $20 million dollars from the Federal Cares Act through the state of Colorado through OED at the Office of Economic Development and International Trade. And so what we're doing is a maximum grant of $15,000 and then a maximum loan of $20,000. And so a business can receive up to $35,000 divided in that way. Are those funds going to be distributed evenly throughout Colorado? Or is there a particular focus toward rural or urban or is there just kind of a free for all? Yeah, so it is a competitive grant process. It's not first come first serve. And while we do prioritize rural minority women and veteran owned businesses, additionally we've earmarked $5 million through October for tourism related businesses. They've been hit really hard directly because of this pandemic. And they are one of the businesses that are an economic engine within Colorado. And we really do want to prioritize. So specifically tourism businesses through October, rural businesses throughout the entire application, but we strongly encourage any business in Colorado to apply. I also encourage any business Colorado to apply. This is a great opportunity and we're so lucky to have organizations like Energize Colorado stepping up and helping out businesses here in this great state. Are there any other additional resources that Energize Colorado has for businesses impacted by this pandemic? Absolutely. So Energize Colorado really has taken a multifaceted approach to this pandemic. Obviously financial support is incredibly helpful right now. And that's sort of the biggest difference that can be made in a lot of businesses. But additionally, we're seeing a mental health crisis that's going on, especially among entrepreneurs and business owners. They are feeling sometimes incredibly lonely right now. And as if their sort of individual dignity is possibly on the line here, there is a lot of dignity to working. And so we've provided through our website, tons of access to free or really reduced cost mental health support. So therapists, application, softwares that can help people. Additionally, we built a network of over 250 business guidance volunteers. So these are folks that have been successful professionals in their own right that have, are you one of them? I'm one of them. Oh, that's awesome. So then you're very familiar with this program, but it's really a chance to take sort of this knowledge that folks like you have developed in years of being an expert, either in a specific industry or in a specific area. And what we essentially do is form many working groups to support the businesses that ask for help. So we'll bring in one HR expert, one accounting expert, a marketing person, and we'll get all three of them to work with that business over a series of weeks, potentially months to really help them sort of get back on their feet, understand how they can grow their business. Additionally, we have really led the effort in Colorado to build a PPE marketplace. So we are selling PPE that is distributed through Colorado manufacturer almost essentially at cost for Colorado businesses. And I got to say the numbers have been outstanding for people that have purchased PPE through us. So it's anywhere from surgical masks and face shields to thermometers and gloves. We're selling disinfectant by the gallon. So I got, I am going to say that I'm pretty proud of the work we've done outside of our $25 million fund. And I am very certain that there is so much more work that can be done past the receipt of money and making sure that we're empowering these businesses to continue to grow and innovate to grow really. That's great. And I can tell you from first hand experience the help that we can give to these entrepreneurs is so great. I was helping a female entrepreneur with a great business opportunity and it's really exciting to get down and help these people in these tough times. Absolutely. So after this $25 million is spent because we all know that $25 million sounds like a lot, but it can go pretty quickly. What's the plan? So we're continuing to raise private dollars from foundations and individuals in Colorado to extend to this program basically as long as we can. Access to low interest capital in the form of loans is incredibly empowering to any small business if that immediate need for capital is what they're looking for. So we're going to continue our loan program well through next year at least. The $20 million from the Federal Cares Act we have to distribute before the end of this year. So I will say I encourage every business to apply. As I said before, it does not first come first serve. We'll be distributing it in phases through the end of the year. So really just make sure that you take your time, write a compelling story that shares who you are, what your business's impact is, and how this money can be the most helpful to you. That's great. Yeah, it's important to get those dollars spent if they're not going to be staying here in Colorado. Might as well use them, right? Right, yep. So let's talk about the application a little bit more. So I haven't seen the application, so I don't know. But is it a video application? Is it a essay form? Is it a series of short questions? Can you talk a little bit more about that? Yeah, so it's a mix of a few of those. One, the application does exist online, although we will also have a written application nearby and then our local lending network and funding partners across the state have also provided resources to people that don't feel comfortable filling it out online or over paper. Potentially, if they speak another language, we'll set you up with a consultant to guide you through that process. So that's a huge thing. The other thing is regarding the application, it is a mix of short and long answers as well as just a few quick bullet points. You know, how many employees do you plan to rehire if you receive this funding? How many employees did you have to lay off? But at the same time, if you're a non-profit, one of the questions we ask you is what is your mission and how is this impact that you want to continue to drive important to responding to the COVID-19 pandemic? So we've really tried to make it as comprehensive as we can yet at the same time, easy to access, easy to understand, and something that really anybody should be able to pick up, fill out, do a really good job at it and sort of go from there. It sounds like you have very well thought through programs, so kudos to you for putting such a great thing together. Thank you. We did see a lot of feedback from traditionally when some of these programs launch, there are a myriad of different complexities that arise on the day the application launches. And so we've been very lucky that we're using a system that has been proven through the Colorado Relief Fund for COVID-19. We've got a top-notch team of volunteers that are really leading this cause up and they have spent months making sure that this application works, is easy to use, and ensures that we're delivering money to the most impactful areas. Scott, what other resources do you have for people who are putting this application together? Of course. So we've done a couple of things. Last week on Monday we did a walkthrough webinar that several thousands of people have viewed since we posted it. And so we really do a very detailed question-by-question walkthrough of the application using the software that people will be accessing the application through. So if it's your first time ever filling out an online application, we've got a step-by-step guide right on our website to go check it out. Additionally, we've compiled an incredibly detailed list of FAQs, a frequently asked question. We sort of highlight what is the GAAP fund, what is Energize Colorado, then we go into the specific information behind the loan terms, the grant terms, what those repayments look like. And then additionally, we've included a very detailed analysis or explanation of each of the questions on the application. And so if you go to our website right now and go to the frequently asked questions, you can actually access basically every question that's on the application with a really detailed walkthrough of the information that it's covering, what you need to be providing, and really how you can make your answers stand out. Additionally, we've partnered with a great Colorado business in Focus 5 and they have provided us support lines for people as they're filling out the application. So you can call in to 1-800-471-0628, seven days a week from 6 a.m. to 6 p.m. support services are offered in English and Spanish. And it really is just there to help any business go through that application question. The other thing we've done is through that same support team, we are connecting the potential applicants and applicants going into next week with mentors such as yourself, Talis, that have volunteered a little extra time to really understand the application and provide that support to businesses, help them write their answers, help them compile documents, and just sort of workshop it with them. I know I said this before, but really this is an opportunity to take a little bit of time to sort of pause, think about your business, think about your impact, think about the effects of COVID-19 on your business and your employees and tell us that story and to really make sure that that's what we're empowering. So we've got a webinar with a full walkthrough of the video. We've got FAQs that give you a detailed explanation of each question and we've got several different ways to support you through that application process for really hands-on mentorship opportunity to basically a call center that's there to help you through that entire process as well. So Kunis the U.S. guy, you guys have done a great job of putting this together. Thank you very much. So before we leave, I'm going to ask, do you have anything you'd like to share or ask of the audience? Absolutely. So the application launches August 31st, that's this coming Monday. So I highly recommend that if you are a Colorado small business with less than 25 employees, please apply. And if you are not, please share this message with the Colorado small business owners that you know it is an incredibly important opportunity and a chance to really make a difference. And so you can go to our website, find out all the information you need, share the content that you want. If you've got any questions, please reach out to us. There are at least 15 different ways to end up in my email through our website. So I promise you, someone will get back to you. Please reach out, please apply, please share. Thank you very much for doing this, Tyler. It's an awesome opportunity to share. Thank you, Scott. You guys have done a great job for supporting businesses here in Colorado. So thanks again. And to all of you out there, please listen to Scott and apply to the Colorado Gap Fund. It's a great opportunity to help us do the best we can in this difficult situation. Until next time, stay savvy.