City secures additional funds for Commercial Loan Program

The City of Austin has learned that it will receive $2 Million from the U.S. Department of Housing and Urban Development, through its Section 108 Loan Guarantee Program from the U.S. Department of Housing and Urban Development (HUD), to serve businesses through the city's Neighborhood Commercial Management Loan Program (NCMP).

To be eligible to receive funding under NCMP a business must have been in operation for two years or more, be able to create or retain jobs, and be credit worthy according to standard loan underwriting guidelines. The program requires at least one job be created per $35,000 in loan monies. Eligible Projects include: acquisition of real estate and improvements; construction of new building or improvements to an existing facility; leasehold improvements; and acquisition of machinery and equipment.

In addition to staff analysis every approved loan application is required to go before the NCMP Loan Committee. The NCMP Loan Committee is comprised of a maximum of seven members from financial institutions, real estate, commercial, and business professions as well as one community representative and one representative from the Community Development Commission. All loan requests that are greater than the City Manager's authority are also brought before the City Council for approval.

The Neighborhood Commercial Management Loan Program was established in 1990 to create or retain jobs for low-and moderate-income individuals by providing financial assistance in the form of low-interest loans to existing small businesses in Austin. To date NCMP has funded over $3.5 million in small business loans and has been responsible for the creation or retention of over 400 jobs.

To apply for the program, contact the Neighborhood Housing and Community Development Department by phone, 974-3100, or e-mail, nhcd@ci.austin.tx.us.

The City of Austin is committed to compliance with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973, as amended. Reasonable modifications and equal access to communications will be provided upon request. Please call 974-3100 (voice) or 974-3102 (TDD) for assistance. This project is made possible by funding from HUD through the City of Austin.

CONTACT: Julie Beggs, 974-3121 (voice)