Posting Language
Title
Approve an ordinance amending the Fiscal Year 2024-2025 Financial Services Department HUD Section 108 Debt Service Fund Operating Budget (Ordinance No. 20240814-007) to increase revenue by $3,860,000 and appropriations by $3,860,000 for pre-payment of debt obligations under the City's Section 108 Family Business Loan Program.
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Lead Department
Financial Services Department
Fiscal Note
Funding in the amount of $3,860,000 is available in the Fiscal Year 2024-2025 Financial Services Department HUD Section 108 Debt Service Fund Operating Budget. A fiscal note is attached.
For More Information:
Belinda Weaver, Treasurer, Financial Services Department, 512-974-7885; Sylnovia Holt-Rabb, Director, Economic Development Department, 512-974-3131.
Additional Backup Information:
The Family Business Loan Program (FBLP), Housing and Urban Development (HUD) Section 108 loan guarantee program, is a public-private partnership between the City of Austin, HUD, and participating private lenders to offer low-interest loans to qualified small businesses that are expanding and creating jobs.
The program is designed to provide "gap" financing in partnership with local financing entities including local private banks and non-profit certified development financing corporations to structure financing packages with lower interest rates and flexible repayment terms. By sharing lending repayment risks among the partners, the result is inducement of greater lending volume to support the expansion of local small businesses.
Impact of COVID-19:
The COVID-19 pandemic introduced significant market disruptions both globally and locally beginning March 2020, leading to a drastic reduction in loan applications due to business closures and economic instability. Government interventions such as congressionally approved CARES Act, the American Rescue Plan, in addition to the U.S. Small Business Administration's Economic Injury Disaster Loan Program temporarily replaced ...
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