DCA looks to help businesses grow through loan fund

Published 6:47 am Friday, January 8, 2010

The Development Corporation of Austin is looking to inform business owners of a program to help their business grow.

In conjunction with the United States Department of Agriculture Rural Development, the DCA is promoting the Austin Revolving Loan Fund. The fund aims to loan to businesses with strong growth prospects, but also ones that have a need for financing a way to take on further growth.

“The Austin RLF is an exceedingly valuable tool for local businesses in these economic times,” said Dan DeBoest, a commercial Lender with Home Federal Savings Bank, in a press release. ” This gap type of financing allows the local banks to make more loans to more businesses. The DCA continues to offer innovative tools to help local businesses, and the local banks certainly appreciate their partnership.”

The Austin RLF targets small, emerging businesses with 50 or fewer employees and less than $1 million in projected revenue.

Businesses that apply should have a sizable percentage of revenue produced through value-added production or service and a broad geographic range of customers.

The DCA works closely with banks to help business projects get moving.

“We’d like to see businesses get their financing through commercial lenders whenever possible. Ideally, this loan fund might help with a financing ‘gap’ that a business needs filled in order to work with the bank,” said DCA Executive Director John Garry in a press release.

“We’ll consider funding 100 percent of a project under the right circumstances,” he added.

Loan amounts can range from $2,000 to $25,000 with rates comparable to banks. Austin RLF loans can be used to acquire and develop land, easements. The loans can also be used for construction projects like an expansion or repairs or modernization of buildings and equipment. The money can also go toward construction projects aiming to improve access to roads and parking areas.

Loans are also available for start-up operating costs and technical assistance.

For more information about the Austin Revolving Loan Fund or funding eligibility contact John Garry, Development Corporation of Austin (507) 433-9496.