AUSTIN, Texas — Small businesses in Austin seeking economic assistance can now apply for a loan of up to $35,000 through the Austin Economic Injury Bridge Loan Program (AEIBLP).
The loan program is designed to help businesses keep employees by providing emergency relief until businesses can receive federal assistance through the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan program.
“We understand that small businesses in Austin are still navigating the road to economic recovery,” director of Austin’s Economic Development Department Veronica Briseño said. “The Austin Economic Injury Bridge Loan Program will help small businesses retain employees and pay for expenses like rent and fixed debt. This is one of the many ways our department is supporting small, local businesses experiencing economic loss due to the COVID-19 pandemic.”
In order to qualify for the loan, businesses must be headquartered in a City of Austin Council district, be able to show an economic loss due to the COVID-19 pandemic and have already applied for the SBA Economic Injury Disaster Loan.
All loans must be repaid within 12 months and will have a 3.75% interest rate. This will allow the City of Austin to make additional loans to help other small businesses.
Although nonprofits were initially approved on the list of eligible businesses, the U.S. Department of Housing and Urban Development did not approve the City’s request to offer loans to nonprofits. The loans are through the federal Section 108 Loan Guarantee Program.
“While we are disappointed that nonprofits will not be eligible for this program, we will continue to identify resources within the City of Austin to ensure our nonprofit organizations and their employees receive assistance during this time,” said Sylnovia Holt-Rabb, deputy director of the City of Austin Economic Development Department.
To apply for the AEIBLP, visit www.coaloans.com.
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