The Houston-Galveston Area Local Development Corporation (H-GALDC) is a certified development company (CDC) that was created in the early 1980’s by the Houston-Galveston Area Council to promote economic development and job creation throughout the 13-county Upper Gulf Coast Region of Texas.
H-GALDC is currently licensed throughout Texas as an SBA Grow Loan Program CDC that supports economic development by making available low cost, fixed rate commercial/industrial real estate financing to expanding small businesses under the U.S. Small Business Administration’s (SBA) SBA 504 Loan Program. We are licensed and regulated by the U.S. Small Business Administration to provide SBA 504 Loan Program financing and work in partnership with a wide range of lending institutions.
H-GALDC - Board of DirectorsH-GALDC - Corporate Members
The SBA Loan Program uses both bank and SBA loans to finance up to 90% (50% bank loans, 40% from the SBA) which means a borrower may only need a 10 percent down payment (cash or project equity).
The program is designed to help for-profit businesses either buy or build owner-occupied real estate and/or purchase capital equipment with a useful life of 10 years or more. Projects typically range from $500,000 up to $10 million in size.
The role of the H-GALDC is to work directly with the financial institution and business applicant to develop financing packages that meet SBA Loan Program guidelines and credit criteria.
The staff then processes, closes, and services the loan. SBA-backed bonds are sold on the private market to fund the SBA Loan Program portion of the loan. SBA 504 Loan Program loans offer lower, fixed interest rates and longer, 20-year repayment terms.
The borrower contributes less equity, which preserves liquidity and longer terms help improve cash flow. Borrowers can roll most of the soft costs of obtaining the loan into the project financing. Partner lending institutions fund 50% of the project amount and hold the first lien on the loan. The low, fixed rate allows lenders to be more competitive and offer a unique funding opportunity in the market.
Mike MintonBusiness Development Officer(713) 993-4511Mike.Minton@h-gac.com