Small Business Interest Loan Buydown Program

The City of Austin is seeking a qualified financial institution to serve as a lending partner for a pilot Small Business Loan Interest Buydown Program. The program aims to support businesses in overcoming financial barriers by partnering with a small business lender to facilitate fair and accessible lending. The selected contractor will be responsible for originating, underwriting, servicing, and monitoring loans in alignment with program guidelines and their own lending policies. The contractor will also be required to provide quarterly performance reports and maintain client files. The program will prioritize businesses located in or owned by residents from socioeconomically disadvantaged neighborhoods and households, and those creating jobs in the City of Austin. • The contractor must be a federally insured depository institution or a certified Community Development Financial Institution (CDFI) in good standing with the U.S. Department of the Treasury. • The contractor must have a minimum of three years of experience originating and servicing small business loans. • The contractor must comply with all applicable federal and state fair lending laws and maintain transparent disclosure of rates, fees, and loan terms. • The contractor must demonstrate the capacity to collect, track, and report all program-required data. • The contractor must launch the program no later than sixty calendar days following contract execution and must determine loan terms, including interest rates, using their customary underwriting standards and prevailing rate schedule.