[ad_1]
AUSTIN (KXAN) — Austin City Council voted Thursday to increase the maximum amount of money local businesses can get through the Family Business Loan program and created a process for approving loans that exceed the maximum amount.
When the loan program started in 2012, the maximum amount a local business could get approved for was $1 million. But since costs for commercial real estate and payroll have gone up in the past decade, the city decided to raise the maximum amount to match the current market.
Now businesses can get up to $4 million dollars from the program, and if a company needs to go past that, there is a process set in place for the loan review committee to get approval on.
Who does it help?
The FBLP was set up to help enable local businesses to grow and hire more employees. It’s a private-public partnership between the city of Austin, Housing and Urban Development, and private investors.
Sheyenne Alvarez, the program manager, said it is for businesses of all sizes. The average loan it lends out is $200,000. She says the program’s loans are more attractive than others because it has a very low interest rate.
“We really want to help people be able to grow and prosper, and create opportunity for their own families and for the community and the employees in Austin,” Alvarez said.
According to city data, the program has granted 24 loans in the past 11 years for a total of $5,569,566. That has created 234 new jobs in Austin, and added to the tax base.
[ad_2]
