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Economic Development

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Small Business

 
 

Small Business

Committee Chairs

Chair: Jim Reid

Vice Chair: Carl Shields

   

Project

 

Revolving Loan Fund for Small Business

 

The City should use Public Private Partnership allocations to immediately increase capital available to established alternative loan funds for lending to businesses located in southern Dallas or for expenses associated with moving a business to southern Dallas. The Plan Fund is capable of making loans as low as $500 while SDDC makes loans up to $300,000. SDDC makes loans primarily from the highly restrictive Community Development Block (CDBG) Program. Accion Texas makes loans between $5,000 and $100,000. The Southern Dallas market has demonstrated a need for a Micro Loan product which is typically less than $35,000. A March 31, 2009 edition of the Wall Street Journal reported that “With many banks continuing to put a hold on lending, more small-business owners and would-be entrepreneurs are turning to micro lenders”.

 

In its deliberations the Small Business Team reviewed revolving loan fund programs in Portland Oregon, St. Louis Missouri, and Pittsburg Pennsylvania. The working capital and equipment loans provided by the Portland Development Commission have interest rates, interest only payment periods, and amortization terms superior to those provided by SDDC. An infusion of capital would enable SDDC to improve its terms, increase its business lending volume and improve its overall economic development impact.

 

The Small Business Team recommends that $1 million of the funds now allocated to public/private real estate projects should be re-directed to micro loans for start up businesses and working capital/ equipment loans to be provided by SDDC to newly established businesses with growth potential.

 

Status - Completed

 

On May 12, 2010, the Dallas City Council approved $1 million from the Office of Economic Development's Public-Private Partnership Fund for the creation of a small business loan program for Southern Dallas. The program will be administered through the Southern Dallas Development Corporation.

 

Read more about the Small Business Team's proposed project in the Interim Team Report.

 

 

Meeting Minutes

(14.3 KB) January 12, 2009
(299 KB) January 12, 2009 - Meeting Handout
(16.2 KB) February 9, 2009
(17 KB) March 9, 2009
(12.9 KB) April 13, 2009
(12.9 KB) April 30, 2009 - Focus Group
(12.9 KB) May 14, 2009
   

Documents

(1.44 MB) Capital One Database Handout
(16.3 MB) Small Business Needs
(16 MB) Small Business Proposed Report to City Council