​Own Your Future provides companion loans of up to $5 million with 4% fixed interest rates and terms of up to 30 years to help small businesses buy property they can operate in and use to build wealth. The program is funded by the federal State Small Business Credit Initiative (SSBCI).

The goal of these loans is to enable access to capital for small businesses that may not otherwise be able to obtain conventional lending to purchase, renovate, or expand their facilities. This program accomplishes this by lending for up to 50% of the total project costs, up to $20 million. Senior, pari passu, and subordinate lian positions are available, subject to underwriting and community impact assessment.

Eligible Uses of Funds

You can use loan proceeds to purchase or renovate commercial real estate, provided that owner occupancy requirements are met. Examples include:

• Buying the space that your business currently leases
• Buying a space as part of a move to a new location
• Acquiring property for the first time, whether a start-up or a business expanding to a physical storefront (such as an e-commerce business or food truck)
• Buying property as a part of an expansion for your company

Eligibility Criteria

The following are eligibility requirements for an Own Your Future loan:

• Requested amount must be between $250,000 and $5 million
• ​Total project costs cannot exceed $20 million
• Borrowers must obtain a minimum 1:1 private capital match (For every dollar of the DHCD loan, you must provide at least one dollar from a private source)
• If you need assistance in obtaining a matching loan, DHCD offers to identify a potential lender from our small business lending resource network for applications that are otherwise eligible.
• Personal guarantees are required from all owners with more than 20% equity

Occupancy Requirements

The US Treasury has established policies regarding eligible use of funds for this program which favors facilities that will be 100% owner-occupied. However, the following are allowable uses:

• Acquisition or Renovation: Borrower must occupy at least 51% of square footage upon acquisition/completion.
• New Construction: Borrower must occult at least 60% of square footage upon acquisition/completion.
• For projects with total costs of $500,000 or less: Owner occupancy requirements do not apply to matched loans of $250,000 available for acquisition or construction. Please contact the program to learn more about this exception.

Note: Proceeds cannot be used to renovate space intended to be leased to another business. Residential construction is not an eligible use. If you are unsure whether your project is eligible, please complete a Business Consultation form and a member of our team will assist.

Loan Terms

Loan terms are flexible and focus on maximizing community benefit. They include:

• 4% fixed interest rate
• Up to 30 years loans
  
• Senior or subordinate loan positions available

Eligible Business

Your business must meet these criteria:

• It has fewer than 500 employees
• The project is not 100% residential (mixed-use project may qualify)
• Your business cannot be:
  • Adult entertainment facilities
  • Check cashing facilities
  • Gambling facilities
  • Gun shops
  • Liquor stores
  • Massage parlors
  • Pawn shops
  • Tanning salons
  • Tattoo parlors
  • Cannabis businesses

Application

Apply online using the application portal.

Contact Information

For more information:

• Schedule a consultation
• Email us at ​[email protected]​