City program will loan up to $35,000 to qualifying small businesses.
AUSTIN, TX – Small businesses in the City of Austin can now apply for a loan up to $35,000 through the Austin Economic Injury Bridge Loan Program.
The City of Austin’s Economic Development Department received approval from the Austin City Council and the U.S. Department of Housing and Urban Development to create this new program, which is designed to help businesses retain employees by providing emergency relief until businesses receive federal assistance through the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan Program.
“We understand that small businesses in Austin are still navigating the road to economic recovery,” explains Veronica Briseño, Director of Austin’s Economic Development Department. “The Austin Economic Injury Bridge Loan Program will help small businesses retain employees and pay for expenses like rent and fixed debt. This is one of the many ways our department is supporting small, local businesses experiencing economic loss due to the COVID-19 pandemic.”
To be eligible for the loan program, businesses must be headquartered in a City of Austin Council district. Applicants must be able to demonstrate an economic loss associated with the COVID-19 pandemic, and they must have already applied for the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan. All loans must be repaid in 12 months and have a 3.75% interest rate. This repayment provision allows the City of Austin to make additional loans to other small businesses.
When the Austin City Council approved Resolution 20200326-088, non-profit organizations were included on the list of eligible businesses. Austin’s Economic Development Department also needed approval from the U.S. Department of Housing and Urban Development (HUD) before launching the program since the loans are financed through the federal Section 108 Loan Guarantee Program. HUD did not approve the City’s request to offer loans to non-profits.
“While we are disappointed that non-profits will not be eligible for this program, we will continue to identify resources within the City of Austin to ensure our non-profit organizations and their employees receive assistance during this time,” notes Sylnovia Holt-Rabb, Deputy Director of the City of Austin Economic Development Department.
To apply for the Austin Economic Injury Bridge Loan Program, submit a request for an application or visit www.coaloans.com.
Visit the City of Austin’s COVID-19 : Information for Business & Industries for more information on resources available for local businesses and their employees.
Stay current on the latest COVID-19 updates for Austin online at www.austintexas.gov/COVID19.
Important Update for Applicants: On April 16, 2020, the SBA announced it is unable to accept new applications for the Economic Injury Disaster Loan based on available appropriations funding. The SBA will continue to process submitted applications on a first-come, first-served basis. Applicants should contact the U.S. Small Business Administration if they have questions about their Economic Injury Disaster Loan application status.
About the City of Austin Economic Development Department
The City of Austin Economic Development Department supports business growth, creative industries, and local communities. These programs build an equitable, sustainable economy to improve the lives of all Austin residents. To learn more about helpful resources, visit www.austintexas.gov/edd and follow @econvitalityatx on Twitter.