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Loans

SBA 504 Loan

Council Finance administers the U.S. Small Business Administration's 504 commercial mortgage program. The 504 loan combines conventional financing from a private lender with a fixed-rate loan from the SBA for the purpose of purchasing real estate, constructing new facilities, renovation or expansion of existing facilities and purchasing long useful life equipment.

The SBA 504 program allows Council Finance to structure a loan package consisting of three funding sources. The borrower's commercial lender typically provides 50 percent of the total project cost, Council Finance's SBA loan provides up to 40 percent of the project cost, and the borrower provides a minimum 10 percent equity injection. The rate is set at the time the loan funds and remains fixed for the life of the loan.

For more information, contact:

Wendy Allen
West Central Council of Governments
Regional Services Director
3702 Loop 322
Abilene, Texas 79602


Revolving Loan Fund (Rural Business Enterprise Grant)

Council Finance administers the USDA Rural Business Enterprise Grant (RBEG) Revolving Loan Fund.

This program offers small loans of $2000 to $15,000 for small business needs.  The business must have fewer than 50 employees and less than $1 million in gross revenues.

The funds can be used for

  • Acquisition and development of land, easements and right of ways.

  • Construction, conversion, enlargement, repairs or modernization of buildings (including façade repairs), plants, machinery, equipment, access to streets and roads, parking areas, utilities and pollution control and abatement facilities.

  • Loans for startup operating cost and working capital.

 

For more information, contact:

Wendy Allen
West Central Council of Governments
Regional Services Director
3702 Loop 322
Abilene, Texas 79602


The IRP Loan Program

The Brownwood Industrial Foundation administers the USDA Rural Development Intermediary Relending Program (IRP).  The purpose of the IRP Program is to increase economic activity and employment in rural communities. Under the IRP program, loans are provided to the Brownwood Industrial Foundation for the establishment of revolving loan funds. These revolving loan funds are used to assist with financing business and economic development activity to create or retain jobs in rural communities.

Businesses can borrow money for the acquisition, construction, conversion, enlargement, or repair of a business or business facility, particularly when jobs will be created or retained.  Startup costs, working capital, equipment purchase, and feasibility studies are also eligible.

Loans are up to $150,000 and you must be turned down by a traditional lender to qualify.

The following entities may apply for loans from the IRP program provided they owe no delinquent debt to the Federal Government:

  • U.S. citizens or individuals who have been legally admitted to the U.S.
  • Those located in a rural area defined as an area with a population of 25,000 or less
  • An entity that is able to incur debt, give security, and repay the loan.
  • A corporation, partnership, LLC, individual, non-profit corporation, public body.

Examples of eligible projects are:

  • The acquisition, construction, conversion, enlargement, or repair of a business or business facility, particularly when jobs will be created or retained.
  • The purchase or development of land (easements, rights of way, buildings, facilities, leases, materials)
  • To purchase equipment, leasehold improvements, machinery, and supplies
  • Start up costs and working capital
  • Pollution control and abatement
  • Transportation services
  • Feasibility studies
  • Hotels, motels, B&B's, convention centers

For more information, contact Ray Tipton, BIFI Administrator 325.646.9535.
Click here to download a commercial loan application.
 


USDA Rural Development

The United State Department of Agriculture Rural Development Department offers various grants, loans, and other financial assistance for businesses.   Visit their website for more information about current programs.

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