The Gun Barrel City Economic Development Corporation (GBCEDC) appreciates your interest in starting or expanding your business in Gun Barrel City. The business climate here is as hospitable as the weather and we work with the City Council and the Greater Cedar Creek Lake Chambers of Commerce to provide the highest degree of service and representation.  We will evaluate incentives for businesses to locate or expand in the Gun Barrel City area and base our findings on taxes assessed and paid, the number of jobs created or retained, wages paid, local purchases of products and services, indirect employment gains and the general benefit of furthering the mission of the Gun Barrel City Economic Development Corporation.  We welcome businesses in manufacturing, production, medical/health, hospitality and distribution. Funds may be used in land lease/purchase, building lease/purchase, rehabilitation or construction, capital equipment purchase, infrastructure improvements or employee training. Funds may not be used for venture or equity capital, working capital/inventories or personal loans.

Loans/Loan Guarantees: The GBCEDC may act as a participant in loan packages either in a subordinate position or as a guarantor. Loans or loan guarantees can be for any of the uses described above. Equipment must have a life of ten or more years. The interest on the loan will be at the prime rate at the effective date of the loan. The duration of the loan and the payback will be negotiated.

Additional Financial Programs

SBA 504: Long-term fixed asset financing, often at below-market rates, is available to qualified small business. The loan may not exceed $750,000 or be more than 40% of the project's total cost, whichever is less.

SBA 7(A) Guaranteed and Direct Loan:  When financing is unavailable on reasonable terms through normal lending channels, loans may be guaranteed by the SBA. The total exposure to the SBA is limited to $2,000,000 at an interest rate not to exceed 2.75% over the prime-lending rate. Maturity may not exceed 25 years for fixed assets or ten years for all other uses. Equity injection of one-third to one-half of total assets is required.

Rural Economic Development Fund: Loan guarantees may be made for 75% to 90% of the loan, with a maximum guarantee of $350,000 and a term of fifteen years or less. Eligible costs include working capital, equipment, real estate, or real estate improvements.