Family Business Loan Program from the Small Business Division

What is your dream for your business in the coming year? Are you looking to finally buy a piece of commercial property? Renovate or build a new building? Finally buy or install the machinery or equipment that will allow for growth? Refinance some existing? Secure working capital financing as part of one of these activities? The Family Business Loan Program from the Small Business Division may be the answer you’ve been looking for…

This loan program, one of many programs the City of Austin Small Business Division has to support small and local businesses in the Austin area, offers low interest loans to qualified small businesses to support their growth and ability to create jobs. While the name implies that only family owned businesses are eligible, it is actually open to many small and local businesses in Austin (see eligibility requirements below).

The Family Business Loan Program is unique in that it is a public-private partnership between the City of Austin, Housing and Urban Development (HUD), and several private lenders. With the hefty mission 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”, the program offers low-interest loans to qualified small businesses. These loans have significantly lower than market interest rates, flexible repayment terms that are project specific, and feature low equity requirements (only 10%) which is a barrier associated with conventional financing.

Small and local businesses often do not have access to the advantageous financing and other privileges and benefits available to large or multinational companies. Programs like the Family Business Loan program exist to make sure growth and job creation happen at all levels of business.

Eligible businesses that are those who are privately owned and for-profit, legally organized, have been operating for at least two years, and who meet the size standards of the SBA. You also must demonstrate the ability to meet repayment terms, be located within an Austin City Council district and commit to creating at least one full time equivalent job for every $35,000 borrowed.

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