Loans | Access to Capital programs

Empowering Underserved Communities with Accessible Financing Options

Our goal is to provide accessible, flexible financing solutions for small and medium-sized businesses, especially in underserved communities. Learn how we can support your growth.

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Our Loan Programs

HBDI offers various loan types to support businesses at different stages and sizes. From startups to established businesses, our lending programs are designed to meet your needs.

Loan Type Offered

Small Business Loans: Providing essential capital to help small businesses grow and succeed.
Commercial Real Estate Loans: Financing for purchasing, developing, or renovating commercial properties.
Equipment Financing: Support for acquiring or upgrading business equipment to enhance productivity.

Loan Highlights: Our loan programs range from $500 to $5,000,000 with terms customized to meet your unique business goals.

Who We Serve: We’re dedicated to supporting underserved and minority-owned businesses in low-income communities, helping them access the financial resources needed to thrive.

Fast Track
Loan

Quick

A fast and simple option for businesses starting their journey toward growth and stability.

Loan Amounts: $500 to $35,000.

Eligibility: Minimal paperwork with a focus on early-stage businesses with basic financial information.

Terms: Up to 10 years with low-interest, fixed repayment schedules tailored to small businesses.

Accelerated Process: Quick approval for eligible applicants needing immediate financial support.

Perfect for: Startups and small businesses looking to jump-start operations with accessible funding.

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Express
Loan

Boost

Flexible funding designed to meet the unique needs of growing businesses.

Loan Amounts: Up to $35,000 to $75,000.

Eligibility: Open to businesses with consistent revenue streams and a minimum credit score.

Terms: Customized repayment schedules with competitive interest rates to suit business cash flow.

Accelerated Process: Streamlined application and approval for businesses ready to expand.

Ideal for: Businesses seeking funds to scale operations or take advantage of new opportunities.

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SMall Business Revolving loan Fund

Thrive

A reliable funding source for businesses needing sustained access to working capital.

Loan Amounts: Up to $350,000.

Eligibility: Businesses with a solid plan for growth, appropriate collateral, and community-oriented goals.

Terms: Renewable terms with low-interest repayment options that align with business cycles.

Accelerated Process: Ongoing access to funds with simplified approval for repeat use.

Best for: Established businesses requiring recurring capital for operations or long-term projects.

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Sba 504
Loan

Upgrade

A tailored solution for businesses investing in long-term growth through major asset acquisitions.

Loan Amounts: Up to $5,000,000.

Eligibility: Businesses with a history of stable financial performance and plans for asset improvement.

Terms: Up to 20 years with fixed or variable interest rates and flexible repayment schedules.

Accelerated Process: Efficient approval process for projects involving equipment, property, or infrastructure upgrades.

Designed for: Businesses looking to expand capacity, modernize facilities, or purchase commercial real estate.

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Why Choose HBDi?

HBDi is committed to providing more than just financing. We offer a comprehensive support system tailored to help businesses thrive, with features that set us apart:

Affordable, Flexible Repayment Options: Customized terms that fit your business’s unique financial needs.
Fast-Track Processing and Quick Approvals: Get the resources you need without delay.
Integrated Support Services: Including M&A guidance and consulting to support sustainable growth.
Professional and Dedicated Team: Our experienced staff is committed to your success, providing personalized guidance throughout your journey.

Professional, approachable, and user-friendly.

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Frequently Asked Questions

How does an HBDi loan differ from a bank loan?

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.

What are the fees associated with getting a loan?

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.

How long does it take to receive funding?

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.

How important is my credit history?

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.

What kind of businesses are ineligible to apply?

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.

What are ineligible uses of loan proceeds?

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

Are there any geographical boundaries?

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

What assets can be used to secure a loan?

HBDi will accept most unencumbered business and personal assets including real estate, equipment, furniture, inventory, accounts receivable, investment property, marketable securities, etc.

Can loans be prepaid?

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.

Do you require personal guaranties?

Any principal of the company (an individual with 20% or more ownership) is required to guarantee the loan.

What is a Tandem 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.

Should I apply for a Tandem Loan with the bank or HBDi?

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.

When must the jobs be created?

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.

Does HBDi provide grants?

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.

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