Brittany Kelley
BUDA — In an effort to continue its goal of investing in economic development in the community, the Buda Economic Development Corporation has launched THRIVE, a 0$ interest loan program, in partnership with LiftFund.
THRIVE, or Targeted Help for Retention, Innovation, Ventures and Expansion, was created after local business owners began asking for revolving loans, said Jennifer Storm, executive director for the Buda EDC.
“To always be responsive to what the businesses are telling us they need is very important to us. If it’s something they say they need, we try to find a solution for that,” Storm said.
In researching, the team discovered that other cities, such as Lockhart and El Paso, have created loan services, as well.
Then, the team connected with LiftFund, a nonprofit community funder, that has created similar opportunities in other locations, and they knew it was a perfect match.
The Buda EDC was required to gain EDC board and city council approval to approve the budget amendment, said Storm.
“Because this was a new program to us, it was not in our previously approved annual budget, which means it needs a budget amendment,” she explained. “The dollars that we are allocating toward this is to buy down the interest rate. So, all of the other dollars are put up by the LiftFund. They are using their own dollars to invest in this project. We just pay the interest rate to LiftFund for them to manage it.”
She noted that THRIVE is in its pilot year, following its recent launch, and Buda EDC will reconsider the budget for it next year, based on demand.
Business owners apply through LiftFund and are approved based on qualifications, such as credit and background checks. Typically, the loans are for a year and can range from $500 to $100,000.
The program, she continued, can be used by an entrepreneur to start a business, but its primary goal is to aid established owners that may be struggling.
“Sometimes, they may have a high interest credit card or they may need support paying for, just a short period of time, payroll. This could help them meet their payroll obligations and then, they pay it back when times get better,” said Storm.
Additionally, the 0% interest rate allows for more money that the owners can instead reinvest in their business, further jobs they can support and, therefore, hire individuals in Buda.
“We’re really proud to stand with our local businesses and so, we want to hear from them and we want to know other ways that we can support them, to continue evolving and finding solutions to support them in this ever-changing environment,” Storm concluded.
Those interested in applying for THRIVE or learning more can visit www.budaedc.com, navigate to “Grow in Buda” and click on “Incentive Programs.”
