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 512-974-9366 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?