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Small business owners in Fort Worth can now apply for interest-free loans thanks to a new program aimed at making it easier to start or grow a business.
CDFI Friendly Fort Worth and LiftFund have teamed up to offer loans of up to $100,000 with 0% interest through a new initiative called the Interest Buy-Down Program. The goal is to remove financial barriers that often stand in the way of entrepreneurs, especially those in communities that have historically struggled to get fair access to funding.
"Small businesses are the heartbeat of Fort Worth," said Glenn S. Forbes, executive director of CDFI Friendly Fort Worth, in a statement. “This program will help launch and grow businesses in neighborhoods that need support the most.”
The program is open to all for-profit businesses located in or moving to Fort Worth. The money can be used for everything from opening a new location to hiring staff, buying equipment, or covering daily expenses.
CDFI Friendly Fort Worth works as a go-between, matching community development financial institutions with borrowers to provide loans to minority-owned businesses and disadvantaged people, both of which have historically lacked access to capital.
The city in 2022 initially kicked in $3 million through the federal government’s pandemic-era American Rescue Plan. Bank of America pledged $10 million toward it in the same year.
“When we help entrepreneurs succeed, we create jobs, support families, and build wealth that stays in the neighborhood,” said Amy Hereford, president and CEO of LiftFund.
LiftFund, a nonprofit lender, has already helped Texas business owners secure more than $7 million in interest-free loans through similar efforts. This new Fort Worth-based program is designed to continue that impact at a local level.
LiftFund was founded in San Antonio in 1994. Since then, the institution has provided millions of dollars in micro and small business loans to entrepreneurs with a 96% repayment rate, according to the institution’s website. For every $1 loaned, a positive economic return of $14 is realized, LiftFund says.
Today, the institution is in 15 states.
“By reducing the cost of borrowing, we can address financial disparities and help boost and create businesses in communities that have faced systemic lending challenges,” Forbes said.
Business owners interested in applying for the 0% interest program can find details and apply online at LiftFund.com/FtWorth-Zero-Loan.