City of Birmingham
Economic Development
Financial Incentives
Resources
OED offers a number of state and federal economic development financing programs including the following: SBA 504, SBA 7(a), SBA LowDoc and MicroLoans, CDBG Float Loans, EDA Revolving Loans and industrial revenue bond financing. For more information contact Tracey Morant Adams at (205) 254-2799 or Lisa Cooper at (205) 254-2657.
SBA 504 Program offers long term, fixed asset financing to eligible small businesses (under 500 employees) for the acquisition, construction, expansion or renovation of land and buildings or purchase of long life equipment.
SBA 7a Program provides loan guarantees for commercial loans as well as direct loans to eligible small businesses. The proceeds may be used for debt consolidation, business acquisition, purchase of machinery or real estate, and leasehold improvements.
SBA LowDoc Program provides financing up to $100,000 for small businesses using a simplified application process. The loan focuses on character, credit and business experience of the borrower.
SBA Pre-Qualification Loan Program is designed to increase lending to women, minorities and other targeted groups by pre-qualifying potential borrowers for loans of up to $250,000 backed by an SBA guaranty prior to the client approaching their commercial lender.
SBA Microlending Demonstration Program provides loans of up to $25,000 to qualified small businesses who agree to attend training seminars and work with commercial lenders to improve their creditworthiness and business experience.
Economic Stimulus Loan Program is designed to assist Birmingham based businesses with an alternative option for small business financing. This loan initiative was developed to create financial opportunities for developers and entrepreneurs thus encouraging increased economic development projects in the City of Birmingham. Under this program applicants may apply for loans at a minimum amount of $100,000 or up to a maximum amount of $1,000,000 for a maximum term not to exceed 24 months.
EDA Revolving Loan Fund Program provides direct loans for the purchase of land, buildings, machinery, equipment and new expansion. Limited to businesses located within the City of Birmingham.
Industrial Revenue Bond Financing is a special method of financing in which a municipal entity, such as the Birmingham Industrial Development Board, issues bonds to finance the acquisition of real property, construction or renovation of facilities, or the purchase of equipment and machinery for eligible businesses. IDB bonds may be taxable or tax exempt under certain circumstances.
State of Alabama Linked Deposit Loan Program provides a portion of the State's investment portfolio to be made available for deposit with Alabama banks to "link" with loans that those financial institutions make to eligible businesses.
Community Development Float Loan Short term financing through a City of Birmingham "FLOAT Loan" funded by HUD Community Development Block Grant provides low-interest financing for a maximum term of 30 months and is available primarily for City of Birmingham qualified projects. Loan terms average 18-24 months, with amounts ranging from $100,000 - $1,000,000. Eligible uses of CDBG funds include real estate acquisition, renovation and construction.
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