$800,000 CDBG Grant Approved to Launch Colorado Harvest Markets, Creating 40 Jobs in La Junta

Description: DOLA approves $800,000 in CDBG funds for Colorado Harvest Markets in La Junta, CO, supporting startup costs and the creation of 40 full-time jobs. Read the Full Letter of Approval from the Colorado Department of Local Affairs... Includes Otero County Commissioners Video with Discussion and Vote for Funding Approval...

Economic Development Win: $800K CDBG Funding Approved for Colorado Harvest Markets in Otero County

Appropriate Determination Submitted for Approval under Community Development Block Grant (CDBG) Agreement #24-647 for Colorado Harvest Markets, Inc. (Borrower), Nolan Hugh Brown (50%) and Amanda Rene' Brown (50%) (Principals and Guarantors).

Dear Danelle:

The Department of Local Affairs ("DOLA") staff have completed a review of the information you submitted in support of the request for Community Development Block Grant funding for inventory and equipment related to the Start-Up of the business Colorado Harvest Markets, Inc. (the "Project").

The Project is located at 315 W. Second Street, in La Junta, CO 81050 in Otero County (the "Subject Property"). Nolan Hugh Brown and Amanda Rene' Brown are owners and principals of the holding company structure and may hereinafter be referred to as the "Principals."

The Appropriate Determination was discussed at the Financial Review Committee (FRC) meeting on February 3, 2026. Your submittal of the Appropriate with additional material subsequently provided, presented the necessary information required for DOLA's review and presentation to FRC with subsequent approval of the Project.

Our office recognizes the local Loan Fund Loan Committee's support of the Project and the importance of the creation and retention of businesses and jobs in the Loan Fund service area. Furthermore, we recognize that your Loan Committee and staff have considered the level of risk and have recognized the Project's weaknesses in the approval of the loan. The FRC has approved the request under the terms and conditions listed below.

1. Terms

• $800,000 Open CDBG Contract funds supported by $1,080,000 Non-SBA Loan, and $120,000 Owner Contribution.

• Interest rate of 6.75%

• Term of 20-year amortization with a 10-year balloon.

• Borrower's agreement to the minimum creation/retention of Forty (40) FTE in the Project. The original income certifications must be furnished to the Loan Fund and held in its files for review during monitoring visits by DOLA staff. At least 51% of ALL created FTE positions must be held by persons of low-to-moderate income.

2. Collateral to be taken by the Loan Fund

• The Loan Fund will be secured by a first lien Blanket, UCC-1 filing on the business inventory, equipment and FF&E being purchased

• Completed collateral documentation shall be obtained prior to the disbursement of any Loan Fund monies. Standard credit and collateral documentation shall be executed as necessary to perfect the above-referenced loan conditions.

3. Disbursement

• Funds will be disbursed at the loan closing

• $800,000 for business startup (existing restaurant including equipment, inventory, and general intangibles). The actual costs must be itemized and supported by appropriate information such as invoices, receipts, etc. The supporting documentation should be held in the loan fund file and made available to DOLA during on-site monitoring visits.

4. Contingencies

• A Unique Entity Identifier (UEI, replacing the DUNS#) is required to be assigned and registered prior to any reimbursement request being processed and approved by DOLA For information go to: https://sam.gov/content/duns-uei

5. Other

• Applicant Principals shall provide personal financial statements and joint tax return annually during the life of the loan or at any other time requested.

• The Loan Fund shall monitor job reports quarterly for a minimum of one year. All employees shall complete a Job Creation form at the time of hire.

• Principal to provide personal financial statements and tax returns annually during the life of the loan.

• Additionally, applicants/principals are to provide annual tax returns for any businesses owned individually or jointly, now or in the future upon request.

• Hazard and liability insurance on all applicable business assets shall be in place with a lien-holder loss payee clause in favor of the Loan Fund as appropriate.

• The Loan Fund shall verify that all business licenses, correct zoning, permits and other municipal, county, state or federal requirements for the operation of the business entity are and remain in place.

If you have any questions, please call me (Redacted).

Sincerely,

Robyn Berkey, Program Manager, CDBG ED

Watch the Video:

Otero County Commissioners Approve $800K CDBG Funding for Colorado Harvest Markets in La Junta

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