For businesses that have not been able to obtain the desired level of capital to grow and expand, Lone Star works with an affiliate organization ( Houston Business Development, Inc.) to offer affordable small business loans structured to meet your specific needs. Loans up to $350,000 for working capital, furniture & fixtures, equipment and real estate are available for eligible businesses.
- Must be a legally established for profit or non-profit business located in Houston
- Sound financial position and reasonable personal support for the project
- Reasonable assurance of repayment, based on past and projected earnings
- Satisfactory credit history and personal character
- Must be able to meet job creation goals of one (1) job created per $35,000 borrowed
- Certain types of businesses, e.g., adult entertainment, selling alcoholic beverages, etc., are ineligible to participate in the loan programs.
Terms & Conditions
- Fixed, below-market rates as low as 5% determined on a case-by-case basis
- Loan proceeds can be used for working capital, furniture and fixtures, equipment and real estate
- Terms are available up to 25 years based on the useful life of the asset
- $75 Direct Loan Application Fee and $250 Tandem Loan Application Fee; 1% origination fee
- No prepayment penalties
Other Program Features
- Must have sufficient collateral (unencumbered, tangible assets) to secure the proposed loan
- Participating commercial lender required to match loans larger than $350,000
- Principals having 20% or more ownership are required to personally guarantee the loan
- Start-up businesses and/or companies that have no reported earnings must submit a detailed business plan with projections and underlying assumptions
- Borrower has two years from funding to create the required jobs.
To Learn more about the available Small Business loans, please visit the HBDi website at www.hbdi.org or contact a loan officer at (713) 845-2400.