o Application fees: $75 for Micro-Enterprise loans, $200 for Small Business loans, and $350 for Fast Track loans (refundable if not approved).
o Origination fees: 1% for Micro and Tandem Loans.
o Legal fees and closing costs range from $350 to $650.

o Small Business loans: 7-20 days from funding application.
o Fast Track loans: Processed within three business days.

o Credit reports and scores are reviewed for all loan requests.
o Fast Track Loan applicants need a minimum credit score of 640.
o Flexibility is exercised in reviewing credit history.

Ineligible businesses include adult entertainment, gambling establishments, and those deriving over 51% of revenue from liquor sales.

Loan funds cannot be used for refinancing debt, investments, residential properties, or speculative real estate.

o Businesses must be located in Houston to be eligible for HBDi loans.
o Fast Track loans require a low-income neighborhood location.

Acceptable collateral includes unencumbered business and personal assets such as real estate, equipment, inventory, and accounts receivable.

o Micro and Small Business loans can be prepaid without penalty.
o Fast Track loans have a prepayment penalty of 10.25% if repaid within the first year.

Any principal with 20% or more ownership must guarantee the loan.

o Yes, start-ups must provide a detailed business plan and inject 15-33% of capital into the business.
o Relevant industry and management experience, as well as sufficient cash flow and collateral, are required.

o A Tandem Loan combines an HBDi loan with a matching loan from a commercial lender.
o HBDi funds some of the debt capital, while the bank provides the remaining balance.

o You can initiate the request with either the bank or HBDi.
o HBDi's tandem loan provides gap financing when a commercial lender cannot meet the total capital requirements.

o Borrowers have two years from the funding date to create the required jobs.
o Job creation progress is monitored annually.

o HBDi is a non-bank lending institution and does not provide grants to for-profit businesses.
o Nonprofits may be eligible for grants through various governmental agencies, corporations, and foundations.

o Fast Track Loan: $5,000 - $25,000, processed within three business days, minimal application requirements.
o Micro-Enterprise Loan: $5,000 - $50,000 for start-ups and businesses in the early stages.
o Small Business Tandem Loans: $50,000 - $250,000, bridging the gap between bank financing and other sources.

Loan proceeds can be used for:
o Working capital
o Business Acquisition
o Equipment, furniture, and fixtures
o Land and building

o Terms range from 1 to 30 years based on the asset's useful life.
o Interest rates are determined case-by-case, with fixed, below-market rates available (as low as 5%).
o Application fees: $350 for Fast Track Loan, $75 for Micro-Enterprise Loan, and $250 for Tandem Loans.
o Micro and Tandem Loans also incur a 1% origination fee and attorney fees for closing documents.

To be eligible for an HBDi loan, businesses must:
o Be legally established and located in Houston.
o Have a satisfactory credit history and demonstrate personal character.
o Maintain a sound financial position and provide reasonable personal support.
o Show assurance of repayment based on past and projected earnings.
o Meet job creation goals for Micro and Tandem loans.
o Fast Track applicants must have a minimum credit score of 600 and locate the business in a low-income neighborhood.

o Submit an online application or deliver a completed application with supporting documents to HBDi.
o Required documents include financial statements, personal financial statements, resumes of principals, debt obligations, collateral details, and a business background description.