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Small Business Lending

Our loan programs offer flexibility, fixed rates, long-term amortization, and quick turnaround

For more than 39 years HBDI has been providing small businesses with flexible, low-cost financing to scale and grow, create jobs, and strengthen communities. Our small business financing includes a variety of loan products with flexible rates, terms and features to fit your needs.

HBDI assists small businesses and start-up entities to access capital that they may not qualify for from banks and conventional lenders. Through a variety of HBDI loan products, eligible small businesses can access below market rate loans for equipment purchases, furniture & fixtures, working capital or commercial real estate acquisition.

We work closely with commercial banks and lenders to reduce the risks that may be associated with some loan requests. HBDI offers a variety of loan types:

  • Equipment
  • Furniture & Fixtures
  • Inventory
  • Working Capital
  • Commercial Real Estate Acquisition and Renovations
Start Your Loan Application

Small Business Loan

  • $5,000 up to $350,000
  • Working capital, Equipment, Furniture & fixtures, Real Estate
  • Up to 25 year terms, fixed, below-market interest rates
  • Timeline: 7 to 21 Business days
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Fast Track Loan

  • $5,000 up to $35,000
  • Seven year term
  • Three day processing, low-fixed rates
  • Includes Management and Technical assistance
  • Timeline: 1 to 3 Business days
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Start-up Business Loan

  • Up $25,000 to $75,000
  • 33% Equity injection
  • Relevant Industry Experience
  • Detailed Business Plan
  • Timeline: 7 to 21 Business days
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SBA 504 Loan

  • Up to $5.5 million
  • Commercial Real Estate Acquisition, Renovations for owner-occupied real estate and Industrial Equipment Purchase
  • 10% Down payment
  • Timeline: 7 to 21 Business days
Learn More

Small Business Loan Process

For nearly four decades, HBDI has helped small businesses access the capital they need to grow. We know time is money, so our loan process is designed to be fast, flexible, and supported by a team that’s with you every step of the way.

01

Apply

Submit our ‘contact us” form, and an HBDI representative will contact you within 24 hours. Together, we’ll review your financing needs and match you with the right loan product. Alternatively, you may begin immediately by submitting your application and supporting documents (i.e., financial statements, tax returns, etc.) directly through our secure online application portal. Simply register with a user ID and password to get started right away.

02

Underwriting & Decision

Once your application is complete, our underwriters move quickly to review your request. With your timely responses, you’ll typically receive a preliminary decision within 72 hours.

03

Approval & Commitment

If approved, you’ll receive a commitment letter outlining the loan amount, rate, terms, and next steps. Your loan officer will walk you through the details so you’re clear and confident before moving forward.

04

Closing & Funding

After you sign the commitment letter, our team will work with you to complete closing requirements. Most loans close within 7–21 days, with funds disbursed promptly for your business needs.

Loan Process Timeline

4 Steps to Your Loan

📄

Step 1 – Apply & Upload Documents

Submit our online form (we’ll call you within 24 hrs) or start immediately via our online portal. Upload your documents (i.e., financial statements, tax returns, etc.).

🔍

Step 2 – Underwriting

Our underwriters review your business and typically deliver a decision within 72 hours.

✍️

Step 3 – Approval & Commitment

Receive a commitment letter with loan terms. Review and sign with your loan officer’s support.

💵

Step 4 – Closing & Funding

Most loans close in 7–21 days. Once signed, funds are disbursed promptly for your business needs.

Start Your Application
Loan Process Timeline

4 Steps to Your Loan

📄

Step 1 – Apply & Upload Documents

Submit our online form (we’ll call you within 24 hrs) or start immediately via our online portal. Upload your documents (i.e., financial statements, tax returns, etc.).

🔍

Step 2 – Underwriting

Our underwriters review your business and typically deliver a decision within 72 hours.

✍️

Step 3 – Approval & Commitment

Receive a commitment letter with loan terms. Review and sign with your loan officer’s support.

💵

Step 4 – Closing & Funding

Most loans close in 7–21 days. Once signed, funds are disbursed promptly for your business needs.

Start Your Loan Application Now

Common Questions

Here are answers to some of the most frequently asked questions about our lending process.
As a nonprofit corporation, HBDi lending activities are subsidized with government funding. As a result, we are able to offer below market rates of interest that are fixed over the life of the loan. HBDi also offers very flexible terms (e.g., collateral coverage, loan to value, amortization, etc.) and credit terms that typically are not available with conventional lenders.

Fees consist of an application fee of $75 for Micro-Enterprise loans, $200 for Small Business loans, and a 1% origination fee. Fast Track loans require a $350.00 fee, which is refundable if the loan is not approved. Micro-enterprise and Small Business loans will incur legal fees and closing costs, which may range from $350 to $650 depending on the size and complexity of the loan.

From the date of application to actual funding, if a loan application is thorough and complete, the process can take from 7-21 days for loans under Micro and Small Business loans. Fast Track loans are processed within three (3) business days.

HBDi reviews the borrower’s credit report and credit score in considering loan requests. However, as a government funded agency we are generally more flexible in reviewing credit history and in some cases are able to extend loans even when credit scores are lower than average.
Ineligible businesses include sexually oriented businesses, gambling establishments, businesses with over 51% of revenues generated from liquor sales, businesses organized for religious purposes, residential builders and speculative real estate investments.
HBDi loan funds cannot be used for refinancing debt, investments, residential properties, or speculative real estate.
Yes. In order to be eligible for an HBDi loan, a business must be located within the city limits of Houston. Additionally, all Fast Track loan applicants must be located in a low-income census tract with 51% or more low-income residents
HBDi will accept most unencumbered business and personal assets including real estate, equipment, furniture, inventory, accounts receivable, investment property, marketable securities, etc.
HBDi micro and small business loans can be repaid without penalty. Fast Track loans, if repaid within the first year of the loan term, carry a prepayment penalty of 10.25% of the outstanding loan balance. After one year, Fast Track loans can be paid without penalty.
Any principal of the company (an individual with 20% or more ownership) is required to guarantee the loan.
A Tandem Loan is an HBDi loan ranging from $50K up to $250K that is used to provide a portion of the debt capital (up to 50%) that a borrower may require. The borrower must have a bank commitment for the balance of the required capital. As an example, should you need to borrow $150K to purchase equipment, HBDi can provide up to $75K provided that a bank or commercial lending institution is committed to lending at least $75K to complete the purchase. A tandem loan is ideal when a bank is reluctant to lend the entire amount you may require due to certain risks associated with your request.
You can originate your request with the bank of your choice or directly with HBDi. Typically, however, your application to HBDi will follow after your request with a bank. Our tandem loan is designed to provide gap financing in instances where a commercial lender is not able to provide the total amount of capital you may require.
A business obtaining an HBDi loan has 2 years from the date of funding to create the required number of jobs. The borrower’s progress in meeting the job creation requirement will be monitored annually and documented by the completion of the appropriate forms.
HBDi is a non-bank lending institution and although we are government funded we do not provide grants. Generally, government grants are not available to for-profit businesses. Non profits may be eligible for grants through various governmental agencies, corporations and foundations.