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Still Budaful Small Businss Loan Program

Still Budaful Small Businss Loan Program

Buda downtown water tower with text saying still budaful loan program

#stillbudaful Small Business Loan Program


Buda Economic Development Corporation's Small Busines Loan Program provides interest free loans of up to $10,000 to qualified businesses in Buda and Buda's ETJ.



The Buda Economic Development Corporation (Buda EDC) has established a Small Business Loan Program that will be administered through the Buda EDC. The Buda EDC Board of Directors approved up to $100,000 in loans be administered to qualifying small businesses. The Small Business Task Force will review all applications received through the Small Business Loan Program. .

How it works:


  • Business owners must apply online here to begin the application process.
  • Loans will range in value of up to $10,000 and will be evaluated based on factors such as: current need, physical location, eligibility and availability of funds
Note: Please note on the application the amount of funds you are requesting. If the requirements are not met, the loan will no longer be forgivable.

  • Funds may be used for expenditures which could include payroll costs, rent, utilities, cost of goods sold, inventory, and other ordinary costs of doing business as outlined in the program guidelines.

Forgiveness Eligibility and Repayment Terms:

  • The loan will be forgiven IF the business can retain or create at least one full-time job within three months after receiving the funds; and
  • The loan will be forgiven IF the business can stay in business for at least six months from the time of application.
  • Required to sign a Loan Agreement as an individual borrower.
  • Must not change the type of business once the loan is received during the terms of the agreement.

Eligibility Criteria:

In order to qualify for a Buda Economic Development Corporation’s Small Business loan of up to $10,000, a business applicant must:
  • Be located within the Buda City limits or Extra-territorial Jurisdiction (ETJ); and
  • Must be registered as a business with the Texas Secretary of State and be in good standing; and
  • Be in compliance with all City of Buda ordinances; and
  • In good standing and not indebted to the City of Buda or the Buda EDC; and 
  • Show a loss of revenue greater than 25% during this crisis period versus last year, or if it is a new business, show a loss of revenue greater than 25% versus the previous 6-month average of monthly sales; or
  • Provide evidence of extreme hardship; and
  • Have 50 or fewer employees; and
  • Commit to staying in Buda throughout the term of the loan.
  • Be willing to provide follow up documents as requested

Eligible expenses:


  • Rent/Mortgage
  • Employee support (salaries, insurance, paid leave, etc.)
  • Utilities (electricity, phone/internet, etc.)
  • Purchase of supplies to offer alternative business access (curbside pickup, delivery, shipping)
  • Purchase of COVID-19 supplies for business/customer protection/cleaning
  • Additional expenses as a result of increased cost from suppliers or alternate suppliers
  • Other business needs as approved by the Small Business Task Force

Process:


Please submit an application and supporting documentation online at www.stillbudaful.org. Applications will be accepted from August 12, 2020 through 5 p.m. on August 26, 2020. All applications will be reviewed for eligibility determination. The week of August 31, 2020, all applicants will be considered simultaneously, notified of the award status and sent documents to complete.


Filing and Document Requirements:


Summary of documents that must be provided at time of application:
  • Completed online Application.
  • Profit and loss statements or other documentation showing a financial loss of 25% or more:
  • Profit and Loss Statement Profit from March 1, 2019 to June 30, 2019:
  • Profit and Loss Statement from March 1, 2020 to June 30, 2020:
  • A narrative of the economic need and proposed use of funds.
  • Completed W-9
  • Other documentation deemed as necessary by the Buda EDC Board of Directors, Small Business Task Force and/or the Buda EDC Executive Director.
To the extent permitted by law, the BEDC will maintain the confidentiality of financial and other proprietary information required to be submitted as part of the application process. As an entity subject to the Texas Public Information Act, the BEDC may be required to disclose certain information in response to specific requests. All parties reviewing documents have signed Non-Disclosure agreements.


Emergency Co-Marketing 2.0 Overview


The Buda Emergency Co-Marketing Grant 2.0 is expanding to assist small businesses with reopening. Tourism-related businesses are encouraged to promote their business to existing customers in Buda and attract new customers outside of Buda. If approved, a qualifying small business located within the Buda city limits, can be reimbursed for 100% of advertising costs up to $1,000 per business.

The Buda Emergency Co-Marketing Grant is available under the Still Budaful Stimulus Program. This Grant will aid tourism-related local businesses in their marketing efforts while recovering from the COVID-19 disaster. 

Applications for this marketing program will be accepted through August 2020.  The co-marketing fund is limited and is administered on a first-come, first-served basis. Only qualifying tourism-related businesses may apply for reimbursement.

Qualifications


  • Business must be a registered business located within Buda City limits. Businesses located in the ETJ do not qualify.
  • Business must apply for the grant prior to launching the advertisement. 
  • Businesses must be privately owned and must be in a tourism-service related industry to include retail, food, beverage, etc.
  • Each business is eligible for 100% reimbursement for a maximum of $1,000. 
  • Qualifying advertisements include website creation, social media marketing, online marketing efforts, search engine optimization, and print media.  
  • Qualifying advertisements may target potential customers in Buda but must primarily target potential customers from outside of Buda City Limits. 
  • Applications will be reviewed at the time they are submitted. 
  • Qualifying advertisements can be combined to equal the maximum grant allowed (i.e. combining Impact Deals with Facebook ad). 
  • Advertising must promote tourism and meet the Texas Hotel Occupancy Tax Code requirements:
  • The expenditure must directly enhance and promote tourism and the convention and hotel industry
  • Promote tourism in the City of Buda
  • If approved, receipts must be turned in by August 31, 2020 to receive reimbursement. If the applicant fails to turn in receipts for an approved advertisement by this date, the application will expire and the applicant will no longer be able to collect on the reimbursement.
Application Process
  1. Applicant submits application with copy of advertisement, target audience (must include audience outside of Buda city limits), and W-9  to staff for review. Advertisements unbecoming of the City of Buda will not be approved.
  2. The City Manager or his designee will review the completed application and proposed advertising. The applicant will be notified within 3-5 business days of submission if approved or denied.
  3. Once the advertisement has been paid for, the applicant will submit a copy of the receipt.. 
  4. Please allow up to two weeks for processing.

 

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