The Family Business Loan Program is a public-private partnership between the City of Austin, HUD, and participating private lenders to offer low-interest loans to qualified small businesses that are expanding and creating jobs. Our mission is to enable existing local businesses to expand and create jobs, revitalize communities, increase the tax base of the City of Austin, and enhance the overall quality of life for Austin residents.

For more information, call 512-978-2502 to set an appointment and discuss your project with a Loan Program Advisor.

 

Why borrow through the Family Business Loan Program?

  • Low Interest Rates: Significantly below regular market interest rates for a variety of business expansion projects
  • Repayment Terms: Flexible repayment terms to meeting project-specific needs and financing to fund a wide range of eligible activities
  • Low Equity Requirement: Only requires a 10% equity injection from the borrower, eliminating a common barrier to conventional financing

 

Who is eligible?

  • A private for-profit business, legally organized and a going concern for at least 2 years
  • Meet the size standards of the Small Business Administration (SBA)
  • Able to demonstrate sufficient profitability to meet repayment requirements
  • Willing to locate project in the Austin area as represented by Council 10-1 plan
  • Commit to create no less than one job (FTE) for every $35,000 borrowed

Additional Housing and Urban Development (HUD) and Small Business Administration (SBA) guidelines for eligibility and underwriting criteria may apply, all project must meet HUD National Objective/Public Benefit Standards.

 

What kinds of projects are eligible?

  • Acquisition of commercial and industrial land and buildings
  • Renovation and new construction of commercial and industrial buildings
  • Acquisition and installation of machinery and equipment
  • Refinancing of existing debt to an independent institutional lender (as part of a new project creating new job opportunities)
  • Working capital financing (only considered in conjunction with the total project and will not be financed independently)

** Loan funds cannot be used to reimburse costs incurred prior to completion of the HUD Environmental Review with the exception of project planning costs.
How to apply?

Veteran Business Loan Initiative

The Veteran Business Initiative is a public private partnership between the City of Austin in conjunction with the U.S. Department of Housing and Urban Development, which offers a low-interest rate loan and low borrower equity requirements to help create or expand a business.

Why borrow through the Veteran Business Loan Initiative?

  • Low Interest Rates: Significantly below regular market interest rates for a variety of business expansion projects
  • Low Equity Requirement: Only requires a 10% equity injection from the borrower--a common barrier to conventional financing
  • Working Capital: Each loan can include up to $35,000 of working capital financing

 

Who is eligible?

  • Must meet the size standards of the U.S. Small Business Administration
  • Must be located in and continue to be located in the City of Austin
  • Former United States Active Duty Military, which includes Reservists, National Guard and Coast Guard personnel from all services (Army, Air Force, Navy and Marines)
  • Must be located within the 10-1 District of the municipal jurisdiction of the City of Austin
  • Preference to borrows will be given in the following order:
  • Borrowers with at least one year’s experience
  • Borrowers with at least six months experience
  • Start-ups

Additional Housing and Urban Development (HUD) and Small Business Administration (SBA) guidelines for eligibility and underwriting criteria apply.

 

What can the Veteran Business Loan Initiative funds be used for?

  • Working capital
  • Inventory or supplies
  • Furniture or fixtures
  • Machinery or equipment

Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate.