Buda EDC to offer interest-free loan program

The THRIVE program provides a financial buffer to small businesses in the city for when they experience periods of decreased revenue, Storm said. The funding will allow businesses to pay essential operational costs, such as rent or salaries, without worrying about the interest on a loan.

How it works

The Buda EDC approved an investment of $100,000 to buy down loan interests and $5,000 for set-up costs at a Dec. 8 meeting. The organization’s fund reserve will finance the program, according to agenda documents.

LiftFund will provide up to $400,000 in loan volume to Buda businesses participating in the THRIVE program.

Businesses must operate or relocate within the city of Buda to qualify for the program. They must be ineligible for traditional lending, meet credit and registration requirements, prove ability to repay the loan and not operate in prohibited industries, according to agenda documents.

Examples of prohibited business include:

• Gambling
• Adult entertainment
• Marijuana companies

Looking ahead

LiftFund will hold an information session for local businesses to learn more about the program and the application process. Applications for the program will be available on the Buda EDC website following its official launch.

The program will become available following the signing of a legal agreement between the Buda EDC and LiftFund.

“I'm excited that we're able to listen to the needs of our businesses and find solutions,” Storm said. “The most important thing for us is to listen to what they're actually asking for and then provide those solutions.”