Colorado Launches New Rural Jump-Start Operating Grants to Boost Business Development

The Colorado Office of Economic Development and International Trade (OEDIT) announced the launch of a new three-year Rural Jump-Start (RJS) Operating Grant program aimed at stimulating economic development and job creation in economically distressed rural counties. The initiative, approved by the Colorado Economic Development Commission (EDC), will distribute up to $630,000 in grants to support approximately 36 businesses and at least 120 new jobs across the state.

“Colorado is committed to supporting the small businesses that drive our economy and these grants will support businesses in our rural communities around the state. Colorado is one of the best places to start and grow a business, and we look forward to building on this important work to strengthen our economy,” said Governor Jared Polis.

Under the new grant structure, eligible businesses located in RJS-designated zones can receive either $15,000 or $25,000 in operating support, with higher awards available to companies in coal transition communities. These funds are intended to help cover business operating expenses, encouraging startups and business relocations to rural Colorado.

“Companies in rural Colorado are creating incredible new technologies, enhancing our supply chain and creating valuable, good-paying jobs in their communities. Last year, the Rural Jump-start Program facilitated 212 new hires in our rural communities, and we are thrilled to continue the impact with these new operating grants,” said OEDIT Executive Director Eve Lieberman.

The new grants replace the original RJS grant program, which is scheduled to sunset at the end of the current fiscal year. Alongside direct financial support, participating businesses remain eligible for a suite of tax relief benefits, including exemptions from state income tax, state sales and use tax, county personal property tax, and municipal personal property tax in participating areas. In addition, Qualified New Hires may also receive state income tax relief.

“The Rural Jump-start program was initiated in partnership with rural communities and has a proven track record of supporting new businesses and new jobs across Colorado’s rural counties. Implementing these new grants will enable more rural businesses to benefit from the program and contribute to their local communities and economies,” said OEDIT Deputy Director Jeff Kraft.

Originally established in 2016 as a tax incentive program, the RJS initiative expanded in 2021 to include both operating and new hire grants. To date, 35 counties have been designated as RJS Zones by the EDC, and 33 companies are participating in the program.

The new operating grants aim to continue this momentum, providing essential support to businesses that contribute to the economic vitality of Colorado’s rural regions.

This article, “Colorado Launches New Rural Jump-Start Operating Grants to Boost Business Development” was first published on Small Business Trends