AUSTIN (KXAN) – The city of Austin is hit the pavement Friday to recruit small businesses to it’s Family Business Loan Program. The two year old public and private partnership between the city, the Housing Urban Development and private lenders offers low-interest loans.
Businesses have to qualify and show that they’re expanding and creating jobs.
Employees from the Economic Development Department will visit businesses on E. 11th and 12th St. and also Riverside. It said there’s a a $40 million loan pool and right now there are only three businesses enrolled in the relatively new program.
The city said the loan offers low interest rate and a 10 percent borrower equity requirement. To qualify businesses have to had been in operation for at least two years, show successive profits during that time and have a net worth of less than $15 million.
A big part of the program is to create jobs, so the loan requires the businesses to create one job for every $35,000 borrowed. They must also show that after-tax profits are less than $5 million.