Disbursed $713,400 in funds out of the $6 million obtainable
As of this morning the Metropolis of Austin had made 22 Financial Damage Bridge Loans totaling $713,400. That’s used about 12 p.c of the $6 million in Part 108 funds authorised by the U.S. Division of Housing and City Growth (HUD) for this objective.
The Metropolis’s Financial Growth Division has printed a three-page on-line dashboard that signifies 155 jobs have been retained by the authorised loans, together with quite a few different metrics related to the bridge loan program.
David Grey, public data and advertising supervisor for the Financial Growth Division, mentioned, “The dashboard refreshes each morning, displaying the prior day’s total.”
Corporations getting loans up to now
What the dashboard doesn’t do is present a listing of precise loan recipients. The Austin Bulldog requested a listing and Grey supplied it.
Eighteen of the 22 loans made to this point had been for the utmost $35,000. The smallest loan of $11,000 went to Somaspace, a Pilates studio. Each loan was granted on the quantity requested.
We used the PDF supplied by Grey to provide a graphic to indicate how a lot cash up to now has been lent to companies inside every council district. It exhibits that:
Kathie Tovo’s District 9 companies acquired essentially the most loans and essentially the most cash: 5 loans totaling $151,000.
Ann Kitchen’s District 5 companies netted 4 loans totaling $140,000.
Sabino “Pio” Renteria’s District 3 companies additionally acquired 4 loans for a complete of $135,000.
Paige Ellis’s District 8 is notable for being the one one to haven’t any enterprise loan recipients.
Districts 6, 7, and 10 every had two companies getting bridge loans.
Districts 1, 2 and 4 every had however one enterprise getting a loan.
You may see a Metropolis of Austin map displaying the boundaries of every council district.
Bridge loan program began gradual
The Metropolis requested HUD’s permission to make use of current Part 108 funds for bridge loans by way of a letter dated March 31. HUD authorised use of those funds April 8.
The Metropolis program, which was launched April 22, makes loans of as much as $35,000 to assist small companies survive the financial catastrophe ensuing from the COVID-19 virus and authorities orders to close down or cut back enterprise operations.
To be certified for a Metropolis bridge loan, candidates will need to have already utilized for an Financial Catastrophe Damage loan from the U.S. Small Enterprise Administration (SBA). To get a bridge loan candidates should be creditworthy and present capacity to repay the loan. Bridge loans are to be paid off with SBA loan proceeds or inside one 12 months, whichever comes first.
Although of considerably restricted enchantment the Metropolis’s Bridge loan Program has been in style sufficient to attract 1,137 inquiries, in essence a request for the applying supplies. The Metropolis has despatched 760 functions to requestors and had gotten again 145 of these by final Friday, about 19 p.c.
Eighty-five functions have been despatched to underwriting, the place they’re examined for cash move and talent to repay the loan. Up to now underwriting has really helpful approval of 24 loan functions and suggest not approving 18. All 42 of these had gone to the Metropolis’s loan Committee and 22 have been funded, with checks mailed to loan recipients.
Hyperlinks to associated materials:
Metropolis of Austin’s checklist of Financial Damage Bridge Loans made, Might 15, 2020 (1 web page)
Ken Martin has been overlaying native authorities and politics since 1981. See extra on Ken on the About web page.
E-mail [email protected]
Associated Bulldog protection:
Metropolis bridge loan program off to a gradual begin, April 27, 2020
Small companies can apply for metropolis’s bridge loans Monday, April 9, 2020
COVID-19 catastrophe assist coming for small companies, March 26, 2020