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Houston Business Development Inc. (HBD) works to assist small companies in overcoming the biggest challenge of any start-up or emerging business, access to capital. Through several special loan funds, eligible small businesses throughout Houston are able to access affordable financing with flexible repayment terms for their start-up and business expansion needs.
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| 1. What kinds of loans are available? |
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| 2. How can loan proceeds be used? |
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| 3. What are the loan terms, interest rates and fees? |
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| 4. What are the eligibility requirements? |
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| 5. How can I apply for a loan? |
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| 1. What kinds of loans are available? |
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Fast Track Loan: $5,000 - $25,000 - Need financial assistance in a hurry? Based largely on credit scores (minimum score of 550), the Fast Track Loan can be processed and funded within 3 business days with minimal application requirements, i.e., no financial statements, tax returns, etc. Management and technical assistance is also provided in conjunction with the loan.
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Micro-Enterprise Loan: $5,000 to $50,000. For start-ups and businesses in the early stages of development that have not been able to obtain credit from conventional lenders.
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Small Business Tandem Loans: $50,000 to $250,000. A Tandem Loan is designed to assist expanding businesses by bridging the gap between commercial bank financing and other funding sources. Depending upon the project size, matching bank financing may be required.
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| 2. How can loan proceeds be used? |
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| Loan proceeds can be used for a variety of business purposes including: |
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Working Capital |
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Business Acquisition |
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Equipment, Furniture and Fixtures |
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Land and Building |
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| 3. What are the loan terms, interest rates and fees? |
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Terms can range from 1 to 30 years depending upon the useful life of the asset being financed. Typical terms are 1-5 years for working capital, 3-10 years for equipment and up to 25 years for real estate.
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Fixed, below-market rates (as low as 5%) are available. Interest rates are determined on a case-by-case basis.
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Application fees are: $350 - Fast Track Loan, $75 – Micro-Enterprise Loan, and $250 - Tandem Loans. Micro and Tandem Loans will also incur a 1% origination fee and attorney fees for closing documents which typically may range from $400 - $650.
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| 4. What are the eligibility requirements? |
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Must be a legally established for profit or non-profit business located in Houston |
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Satisfactory credit history and personal character |
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Sound financial position and reasonable personal support for the project |
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Reasonable assurance of repayment, based on past and projected earnings |
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Must be able to meet job creation goals for Micro and Tandem loans (one (1) job per $35,000)
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Minimum credit score of 550 is required for Fast Track applicants and the business must be located in a low-income neighborhood |
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Certain types of businesses, e.g., adult entertainment, selling alcoholic beverages, etc., are ineligible to participate in the loan programs. Consult your HBD representative for further information.
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| 5. How can I apply for a loan? |
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Persons interested in applying for an HBD loan may submit an online application or print a copy of the application format and submit it and all supporting documents to HBD in person. Documents required for preliminary consideration for the Micro and Tandem Loans include:
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Sources and uses of funds detailing the proposed loan request
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3 years of fiscal year-end financial statements
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Current interim financial statement (not more than 3 months old)
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Personal financial statements and resumes for principals owning 20% or more of the business
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Summary of company debt obligations including current balance, origination and maturity dates, and monthly payments
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Listing of unencumbered assets that can be pledged as collateral
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Narrative description on the background of the business (i.e., location, market, management team, purpose for loan, etc.)
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*Fast Track applicants seeking to borrow less than $20,000 need only to submit the completed application and fee, and a personal financial statement for loan consideration. For Fast Track loan requests of $20,000 to $25,000, a year end financial statement and business tax return are required.
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| • Please Submit Inquiry Form for more information : Click Here |
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Houston Business Development, Inc.
5330 Griggs Road, Houston, Texas 77021
Phone: (713) 845-2400 | Fax: (713) 645-2830
Email: [email protected]
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