| 
|
Frequently
Asked Questions
What is the South Texas Business Fund?
South Texas Business Fund (STBF) was created in 1978
as the City of San Antonio's loan production office.
The STBF commercial loan programs enhance the availability
of capital to the small business community. Also,
STBF and the City of San Antonio's Development and
Business Services Center provide management and technical
assistance and supports activities and policies which
stimulate job creation, expansion, and diversification
of the local economic base. The STBF loan programs
include; SBA
504, SBA
Microloan, the
EDA Revolving Loan Fund (RLF), Inner
City Loan Fund and the Bill
Sinkin Loan Fund Programs. All projects financed
by STBF must create or retain jobs or meet an economic
development objective that impacts the local economy.
|
|
| |
| What are the benefits of STBF programs? |
- Fixed interest rates
- Low cash injection of 10% for existing expanding businesses and 20% to 50% for start-up.
- Intermediate to long term loans.
- Finance soft costs including interim closing costs, bank points, title insurance, appraisals, etc.
|
|
^Top
|
| How can loans be used? |
- Acquisition of vacant land.
- Acquisition of land and building.
Leasehold improvements: Renovation of building, addition to building.
- Construction of a building.
- Acquisition of a commercial fishing vessel or party boat.
- Acquisition of machinery and equipment, and furniture and fixtures.
- Associated soft costs: title searches and insurance; attorneys fees; appraisals; environmental reports; architects; permits; surveys; installation of machinery; points on bridge loans, etc.
- Not permitted: mortgage broker fees; points on permanent financing; moving expenses.
- Refinancing not permitted except to finance property acquired within last nine months with interim funds.
Working capital.
|
|
^Top
|
| Who is eligible for these loan programs? |
- For-profit businesses.
- Legal entity-corporation, partnership, sole proprietor, limited liability company.
- Any type of legitimate business: manufacturing, wholesale, service, professional service or retail.
- Located in or planning to locate in the Alamo Service Delivery Area (ASDA).
- Small business: net worth under $6 million and net profits after taxes under $2 million; or meet SBA's other size standards (by sales or number of employees depending on SIC code).
- Planning to use the loan proceeds for capital investment (land, building, boat, leasehold improvements, renovation, construction, machinery and associated soft costs). The SBA 504, EDA and HUD loan programs will leverage private lender funds. The STBF loan will finance up to 40% of the project costs and private lender finances 50%. The borrower equity injection is 10% for an expanding company and 20% to 50% for start-up.
- Two or more unrelated small business may receive a 504 loan to buy or construct a building as long as they, together, will occupy at least 51% of an existing building or 60% of new construction.
|
|
^Top
|
| Who is ineligible? |
- Not-for-profits. (Except for Inner-City Loan program)
- Company whose stock in trade is money (stock brokerage house; bank; insurance company with the exception of insurance agencies, which are eligible.
- Offshore facility.
- Speculative operation.
- Lobbyists.
- Businesses with more that 1/3 of income derived from legal gambling.
|
|
^Top
|
| How can I contact the STBF? |
For further information, please call a loan officer at (210) 207-3932, or 1-800-557-2532. Web address is www.sotexbizfund.com, and fax is (210) 207-3939.
|
|
^Top
|
| Where is the STBF located? |
The STBF is locate in the Frost Bank Tower, 100 W. Houston Street, Suite 1900, San Antonio, TX 78205. Get Directions
|
|
^Top
|
South Texas Business
Fund
is an SBA Accredited Lender
|
Top