Business Financing Dallas
Dallas in the United States is no different from other places in the US. There are many sources of business finance here ranging from various financial institutions like banks etc to Government institutions to Institutions established to specially cater to financing a small business.
Specialized Business Financing
Special funds have been allotted by the government in Dallas so as to help the business enterprises thrive. Some of the funding agencies are as follows:
Southern Dallas Development Fund, INC:
It is also known as the SDDF. All the business enterprises that are located in Southern Dallas county or the City of Dallas are eligible to obtain financial help from this fund. But the business enterprise should have successful operating results for the past 18 months to become eligible for this assistance. Any bank participation would be preferred. As far as the loan amount is considered, a business enterprise can avail a maximum amount of $250000 under the above program. All the financial assistance that is provided under this program aims to fulfill some objectives. These are creation of new jobs for the unemployed, new business set ups in the low and medium census tracts to ensure uniform development and the minorities that have not been able to progress in a great way can improve themselves economically.
Credit facilities are not given without any security and the small business enterprise has to provide it against the loan amount borrowed. As far as the collateral is considered, it can be a first lien on the property, A/R, Inventory, Assignment of Corporate stock and the FFE. The second lien on the business assets are also accepted provided it is accompanied by the first lien of the participating lender. Apart from these, the personal guarantee of the owners of the business enterprises is also accepted.
The various purposes for which the financial assistance is provided generally are the working capital, for the purchase of equipment and machinery, the real estate acquisition for the purpose of business and the renovation as well as the construction of the new business spaces.
Community development loan fund:
It is also known as CDLF. All business enterprises that are located in federally-designated census tracts in the Southern Dallas or all the business enterprises that can easily locate themselves in the above area are eligible. But the business enterprise should have at least 18 months of successful operating results for the past 18 months. The maximum amount that can be provided under this program is $300000. The funding under this program also aims at fulfilling certain objectives. These are the creation of new jobs; one new job per $35000 has to be provided by the business enterprise that is being financed under the program. Apart from this criterion, about 51% of the jobs created must be made available to the low and the medium income group individuals so that the overall development of the area is ensured. As far as the collateral is concerned, the security includes the property on which lien can easily be marked, A/R , FFE, Inventory and the assignment of the corporate stock. Apart from the above, the second lien to the senior lender is also accepted as the security. The personal guarantees of the owners of the business enterprises are also accepted.
The amount borrowed can easily be used for the working capital requirements, for the real estate acquisition, and for the purchase of machinery and equipment. These two are the prime funds under which the business finance is provided to the business enterprises in Dallas. Apart from this, there is also a Dallas business finance corporation.
The Dallas Business Finance Corporation
This is another financial institution that provides the financial assistance to the various business enterprises in Dallas. All the business enterprises that are located in the state of Texas and that meet the SBA loan eligibility can apply for financial assistance. As far as the loan amount is concerned, the small business enterprise can avail 40% of the total project cost. The loan quantum varies from $100000 to $2000000. The objectives that must be fulfilled are the creation of one job per $50000 loaned and the business enterprise should be in the enterprise zone location or it should be owned by minorities or a woman. The collateral and the end use of funds are the same as they are in the above two programs discussed above. The main aspect of this institution is its financing structure. In the financial assistance provided by this corporation, the borrower should provide at least 10% of the total project cost, the senior lender should provide the 50% of the cost and remaining is to be provided by the corporation.
Dallas on the whole has an effective and able business financing system in place. Apart from the banks and the other non banking financial companies, there are special programs also, as discussed above, under which the business enterprise can get the financial assistance.
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