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The Buda Economic Development Corporation, or Buda EDC, is set to launch a program offering small businesses in the city interest-free loans.
The overview: The Targeted Help for Retention, Innovation, Ventures and Expansion, or THRIVE, program is a partnership between the Buda EDC and LiftFund, a San Antonio-based organization.
The partnership allows the Buda EDC to buy down the interest rate on loans to Buda-based businesses, said Jennifer Storm, Buda EDC chief executive officer. The program provides a financial buffer to small businesses in the city for when they experience periods of decreased revenue.
The funding will allow businesses to pay essential operational costs, such as rent or salaries, without worrying about the interest on a loan.
How it works: The Buda EDC approved an investment of $100,000 to buy down loan interests and $5,000 for set-up costs at a Dec. 8 meeting. The organization’s fund reserve will finance the program, according to agenda documents.
LiftFund will provide up to $400,000 in loan volume to Buda businesses participating in the THRIVE program.
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