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Economic Growth Support for Houston's Low-Moderate Income Citizens

Established in 1986, the Houston Business Development, Inc. (HBDI) is a non-profit dedicated to stimulating economic growth and job creation for low-moderate income citizens. Funded by the HUD Community Development Block Grant, the Business Technology Center offers a range of support services for emerging businesses, including office space, workshops, and counseling. HBDI provides various loan options to eligible businesses located in Houston, focusing on fixed assets and working capital, with competitive rates and flexible terms.

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Economic Growth Support for Houston's Low-Moderate Income Citizens

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  1. History and Purpose • A non-profit corporation established in 1986 by the city of Houston • To stimulate economic growth and create jobs for low-moderate income citizens • Funded by the HUD Community Development Block Grant (CDBG)

  2. Business Technology Center A 160,000 sq. ft. office complex that provides essential support and assistance for emerging businesses.

  3. BusinessTechnology Center • Office Space Receptionist • Conference Rooms Clerical Support • Workshops Counseling • P.O. Box rentals Notary Services • Answering services Computer Lab • Business library Internet Access • 24 hour security Free parking

  4. Types of Loans • Fast Track Loan • Loan Amount: $5,000 - $25,000 • Use of Funds: Fixed assets, r/e, w/c • Terms:1 to 7yrs • Rate: Fixed, Prime + 2% • Direct LoanLoan Amount: $5,000 - $100,000 • Use of Funds: Fixed assets, r/e, w/c • Terms: 1 to 7 years • Rate: Fixed – case-by-case • Tandem LoanLoan Amount: $100,000 - $250,000Use of Funds: Fixed assets, r/e, w/cTerms: 1 to 25 yearsRate: Fixed -case-by-case

  5. Loan Eligibility Criteria • For-profit or non-profit business • One year in business • Located in the city of Houston • Create 1 job per $35,000 • Sales less than $25MM

  6. Ineligible Businesses • Sexual or Liquor Oriented • Speculative Real Estate • Residential Housing • Religious Organizations • Publishers & Broadcasters

  7. Application Procedures • Year End & Interim Financial Statements • Resumes & Personal Financial Statements of principals • Description of Business • Outline of Loan Request • Listing of Collateral • Listing of Debt Obligations

  8. Underwriting Procedures • Proven management experience in business/industry • Sound character and integrity • Sufficient equity to operate on a sound financial basis • Sufficient collateral • Positive earnings record and repayment ability.

  9. Fees • Micro & Tandem Loans • Application $75 & $200 • Origination 1% • Legal $325 - $525 • Fast Track Loans • Application $350

  10. Loan Approval Process Steps In Process Time Frame Determining Eligibility 2 - 4 days Initial interview Site visit Application Process 6 - 10 daysSubmit application Complete credit analysis Present loan request to HBD Board Send commitment letter to applicant Commitment letter returned Closing Process 4 - 7 days Draft loan documents Loan closing Total Estimated Time 12 - 21 days

  11. Benefits to Borrower • Access to Capital • Low – Fixed Interest Rates • Flexible Repayment Terms • Minimal Collateral Requirements • Quick Turn Around

  12. Benefits to Bank • Reduces exposure in marginal credits • Strengthens Collateral Position • CRA Credit • Creates Goodwill with Customers • Enhances cash flow position

  13. Contact Information Mario J. Mendiola 713-845-2400 ext 2473 m.mendiola@hbdinc.org 5330 Griggs Rd. Houston, TX 77021 www.hbdi.org

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