Show All Answers

1. What is this loan program for?

Provides loans to arts organizations, artists and small specialty creative and arts related businesses.

2. Who is eligible for an Arts & Business loan?

Applicants must be a 501 ©3 nonprofit or be fiscally sponsored by one, including individual artists OR be a business primarily located within Eugene.
Additionally,
- Loans must directly support arts and culture in Eugene or be placemaking projects/business improvements that utilize the arts as a primary strategy for community or economic development.
- Individuals must reside in Eugene

3. I’m a startup – would my business qualify?

Yes. Both startups and existing businesses are considered so long as loans directly support arts and culture in Eugene or be placemaking projects/business improvements that utilize the arts as a primary strategy for community or economic development

4. Do I need to provide collateral to obtain loan funding?

Yes. Collateral is needed to secure all Arts and Business Loans. All applicants will be evaluated for credit worthiness and will need to provide financial statements as well as provide appropriate collateral.

5. What types of loans are available?

There are four types of loans:
- Bridge loans for special projects secured by contract, grant, foundation funding or other guaranteed income.
- Opportunity loans for new revenue stream investments, expansions or cost-saving opportunities
- Infrastructure loans to fund historical renovations, storefront improvements, and creative place making projects or events.
- Creative Capital loans for fundraising events or performance production expenses and artists fees that are secured by event revenue or box office receipts.

6. What is the repayment timeline?

Loans must be paid back within 24 months. Some loans can have longer repayment plans within certain circumstances. Bridge loans must be repaid within 6 months.

7. What is the interest rate?

The interest rate is fixed for the term of the loan at the Prime rate at the time of loan assignment.

8. What is the loan amount I can apply for?

Loan amounts will range between $5,000 - $50,000. Loans may be made in larger amounts for projects with extraordinary community benefit. Project financing will not exceed 50% of overall project budget.

9. How do I apply?

Applying for a loan is a two-step process.
Step 1: All loan fund applications should be submitted first to the Arts and Business Alliance of Eugene. The ABAE loan fund committee will perform an initial application review which will screen the loan application for project appropriateness, artistic merit, and evaluation of whether the application supports the goals of the Arts & Business Loan committee. If approved, the ABAE committee will submit a memo to the City of Eugene approving the application for review.
Step 2: Your application, and other materials listed in the application checklist, are forwarded to the City of Eugene business loan analyst for underwriting and the applicant will be asked to then submit full application materials including financial statements as well as a $50 application fee. The City's Loan Advisory Committee will review the proposal and make a recommendation.

10. How quickly can loans turnaround?

Anticipated loan decision turnaround time is within 30 days of answering all questions on submitted materials in step 2 of the application process. If approved, the borrower can receive funds from the City of Eugene upon closing.

11. Are there any fees to apply?

Yes, $50.

12. Where does the funding come from?

Funding for this loan pool comes from a private ABAE donor and a City of Eugene loan pool. The Arts and Business Loan program is a collaborative program of ABAE and the City of Eugene.