Linked Deposit Program
Program Objective
The Linked Deposit Program was established to encourage lending to historically underutilized businesses, child care providers, non-profit corporations, and/or small or medium-sized businesses located in an Enterprise Zone.
Use of Loan Proceeds
Use of proceeds may include working capital or the purchase, construction, or lease of capital assets, which include land, buildings and equipment. Loans to start-up businesses are permissible, subject to the lender's normal credit evaluation.
Process
The participating lender must be an institution that has been approved by the Comptroller as a State Depository Bank. A borrower must apply with a participating lender who will determine program eligibility. To be eligible, the borrower must be one of the following:
- A historically underutilized business;
- Child-care provider;
- Non-profit corporation; and / or
- A small or medium-sized business located within a state enterprise zone
Loans are subject to the lender's normal credit evaluation. Minimum loan amount is $10,000; maximum loan amount is $250,000 with the loan term for no more than the useful life of the financed asset. Participating lenders pay a lower interest rate on the linked deposit received from the State.
Contact Information
For additional information on the Linked Deposit Program, please contact us at (512) 936-0100.
Sign-up to get Linked Deposit Program updates by e-mail