Small businesses are a critical part of the economy in Alamo, and the Alamo EDC works closely with those businesses to ensure their success. The EDC helps to cultivate an economically-healthy environment that encourages businesses to succeed while supporting the creation of jobs. The Alamo EDC assists and supports businesses through two main programs: the Revolving Loan Program and the Micro-Loan Program. In this piece, we’ll be focusing on the Revolving Loan Program.
What it Is
The Revolving Loan Program offers small businesses with a low-interest financing option and consists of:
- A collateral-based loan ranging between $10,000 and $150,000.
- An interest rate range of 4% and 10%.
- A length of up to 10 years.
- The option to be used as working capital or for repairs/renovations.
How Can My Small Business Qualify?
In order to qualify for this program:
- The business must be located within Alamo’s city limits.
- The business must be owned by a U.S. citizen or resident alien.
- The owner must contribute 25% of the total project cost.
What’s Needed to Qualify?
After a business meets the loan’s qualifications, the EDC will request the following:
- A business plan and reason for the loan.
- A project budget if the loan is to be used for repairs and renovations.
- A list of all owners or board members that hold at least 20% ownership of the company.
- Business and personal income tax returns that cover the previous two years.
- A profit or loss statement for the previous quarter.
- A yearly balance sheet.
- Three years of financial projections.
What Comes Next?
After receiving all requested documents, the EDC and Loan Application Committee will begin reviewing. A decision will be made within 30 days with funding beginning within 60 days after approval. Contact us today to find out what you can do to receive a loan today!