Business Loans

BELLMEAD EDC 10xx BUSINESS LOAN PROJECT

LOCATION: Only businesses located in the City of Bellmead are eligible for the BEDC loan program.

LOAN USES:
Operating expenses |  Inventory | Lease hold improvements  | Supplies  | Fixtures, furniture or equipment

LOAN AMOUNT:  
The minimum loan amount is $500.00 and the maximum amount under this project is $10,000. At least 50% of the loan amount must be secured with some form of collateral for loans above $500.00.

LOAN TERMS: From 1 to 5 years payable in monthly installments which are ach debited directly from a savings or checking account.

FEES:  Application fee:  $150 payable to American Bank when submitting the loan application.

Interest rate:  (2%-5%) will be equal to the number of years for repayment, i.e. 2 years = 2%APR; 3 years = 3%APR; etc…

FIRST STEP:
The first step in applying for a loan at BEDC is to have a pre-qualification interview.  This will be conducted by one or more BEDC Board members.  Upon approval of the business concept and for loans above $1,500.00, the applicant will be referred to the SBDC (Small Business Development Center) where the applicant will discuss the business plan, financials, and other required information with the consultant.  This is a confidential interview where the applicant will be able to demonstrate the validity of the business and gain any assistance deemed to be needed for a successful operation (or continued operation) of a business. A letter of endorsement will be provided from the consultant to the BEDC.  The BEDC has the authority to approve or disapprove any further steps without regard to the recommendation either for or against the loan.

SECOND STEP:
The second step involves the actual application for the bank loan.  This will be provided by a BEDC member.  Once completed, this form along with a non-refundable fee of $150.00 will be presented to a member of American Bank at the Bellmead location. They will process the application and conduct a full credit review and check of the applicant and business.  Once completed, American Bank will provide a letter of recommendation to the BEDC. The BEDC has the final authority to approve or disapprove any loan regardless of this letter of recommendation for or against the applicant.

THIRD STEP:
The third and final step is completed with a final interview with a BEDC board member who will review the packet with the letters of recommendations.  This member will make a presentation to the BEDC board of directors.  The applicant will be allowed to make a presentation to the board if they so choose.  The board will approve or disapprove the loan.  Once the loan is approved, a letter will be provided to the applicant signed by the President of the BEDC board.  This letter will specify the amount of the loan, the term of the loan, and the interest rate of the loan.  Once this letter is returned to American Bank, the loan will be processed.  No further application fee will be due from the applicant to American Bank.

Once you have submitted a complete application, we will do our best to get back with you within 7 to 10 business days.

OTHER CRITERIA:
All applicants must:
• Have a written business plan and financial cash flow sheets.
• Have proof of a minimum of 10% equity injection. That is, the owner must have made investments or purchases for the businesses totaling at least 10% of the loan value.
• Be a U.S. citizens or legal residents
• Be in good standing on federal, state, county, and municipal taxes and fees.
• May not be used in conjunction with any other BEDC program