The EDA RLF offers loans of $10,000 to $150,000 to help Texas businesses purchase assets including buildings, equipment, furniture and/or inventory; and, provide for working capital and closing costs.
Fifty percent or more of each loan must be used to purchase assets.
Terms The interest rate is a minimum of 4 percent fixed for the life of the loan.
The loans are underwritten much like a standard bank loan.
Typical loan maturities range from 5-7 years, depending on the loan amount, and other factors.
The loans are secured with collateral from the borrower.
Collateral includes business assets financed as part of the loan request, and can also include other business and personal assets.
Personal guarantees, life insurance and hazard insurance are also required.
Everyone who applies for a loan must have a business plan.
A complete loan application requirements checklist is available with the loan application package.
Applicants will be required to provide a commitment letter or decline letter to evidence that credit is not available elsewhere.
Applicants are also required to contribute a minimum of 10% of the total funds needed.
Timing Timing depends on several factors including, the completeness and accuracy of the information submitted, how quickly the required information is provided, the complexity of the project, and the number of completed loan applications already in process.
On average, the loan process can take between 4 and 6 months from receipt of a complete application.
Eligible & Ineligible Businesses Eligible businesses must be located in the 13-country GCEDD region – Austin, Brazoria, Chambers, Colorado, Fort Bend, Galveston, Harris, Liberty, Matagorda, Montgomery, Walker, Waller, and Wharton counties.
Most for profit, owner-operated start up and existing businesses with the goal of creating jobs are eligible.
One job must be created for every $65,000 of EDA loan funds.
Speculative, passive, and investment related businesses are not eligible.
Examples include storage units, real estate investment, and RV parks.
The loan may not be used to refinance debt or finance business acquisitions.
Other conditions may apply.
Certain federal restrictions apply.
Gap Financing The EDA RLF is designed to leverage business owner investment and bank financing.
This means that the loan program provides gap financing when businesses are unable to obtain all of the financing they need from banks.
If a bank is unable to finance any portion of the applicant’s loan request, the business may apply for a gap financing loan from the EDA RLF.
Gulf Coast Economic Development District
Address: 3555 Timmons Lane, Suite 120