The City of Austin is no longer accepting new inquiries for the Austin Economic Injury Bridge Loan Program. The deadline for submission expired on May 8, 2020 at 5:00 p.m.
We are exploring how we can use additional federal and local funds to offer additional assistance for small businesses, start-up companies, entrepreneurs, creatives, and non-profit organizations.
Find helpful resources:
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City of Austin's ATXRecovers.com - A one-stop resource to help businesses and individuals recover from the financial hardships caused by the COVID-19 pandemic.
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Economic Development Department’s Small Business Resources Directory - Database of local, state, federal, and community resources. Filter by “Disaster Relief” to find immediate support for businesses impacted by the COVID-19 pandemic.
The Austin Economic Injury Bridge Loan Program provides loans up to $35,000 for daily needs like rent, payroll, and debt. Eligible local businesses must be able to demonstrate an economic loss associated with the COVID-19 global pandemic. The loan is intended to “bridge the gap” between the time a major catastrophe hits and when a business secures recovery resources. The Austin Economic Injury Bridge Loan Program terms require payment of loan dollars up to 12 months at 3.75%.
This loan is not designed to be the primary source of assistance to affected businesses. To be eligible, you must be headquartered in a City of Austin Council district and have applied for the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan.
Frequently Asked Questions
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- Is the Austin Economic Injury Bridge Loan a grant?
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No. The Austin Economic Injury Bridge Loan is not a grant. This loan requires repayment over 12 months. Repaying the loan allows the City of Austin to make funds available for additional businesses.
- Do I need to repay the dollars received through the Austin Economic Injury Bridge Loan Program?
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Yes. The Austin Economic Injury Bridge Loan must be fully repaid over 12 months or paid in full from federal disaster assistance, whichever occurs first. Loan interest rates are based on the following terms: Repayment up to 12 months at 3.75%
- If my loan application is approved, what are the next steps?
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Borrowers must complete a loan closing after loans are approved. During a loan closing, borrowers sign forms acknowledging they understand and agree with the terms of repayment. Once your case manager confirms receipt and completeness of signed loan documents, your case manager will submit requisite forms to request a loan proceeds check be issued.
- How will I receive funds from the City of Austin if I am approved for the Austin Economic Injury Bridge Loan Program?
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The City of Austin will make all efforts to send funds within 10 business days following the loan closing. Factors that might affect this timeline include the volume of checks being processed and the delivery timing of the United States Postal Service.
- How does the Austin Economic Injury Bridge Loan Program work in tandem with the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan?
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The Austin Economic Injury Bridge Loan Program is intended to “bridge the gap” between the time a major catastrophe hits and when a business secures long-term recovery resources through the Small Business Administration (SBA) Economic Injury Disaster Loan.
- Are applicants for the Austin Economic Injury Bridge Loan Program required to apply for a U.S. Small Business Administration (SBA) Economic Injury Disaster Loan?
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Yes. Applicants for the Austin Economic Injury Bridge Loan Program must apply for an SBA Economic Injury Disaster Loan.
Please note: As of April 16, 2020, the SBA is unable to accept new applications for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
- If I am approved for the Austin Economic Injury Bridge Loan Program, does that mean I will be approved for the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan?
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No. The Austin Economic Injury Bridge Loan Program’s financial review is structured based on similar requirements for the SBA Economic Injury Disaster Loan. However, due to some differences between the local program versus and federal program, there may be situations where locally approved loans may not qualify for an SBA Economic Injury Disaster Loan. Additionally, an application may be declined locally but approved the federal program, which is why it is important to apply to both.
Please note: As of April 16, 2020, the SBA is unable to accept new applications for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
- What happens if I am approved for the Austin Economic Injury Bridge Loan Program but not the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan?
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If a borrower accepts an Austin Economic Injury Bridge Loan Program but is not approved for an SBA Economic Injury Disaster Loan, the borrower must repay the Austin Economic Injury Bridge Loan over the 12 month period. The original terms of the loan will still apply.
