TDC advocates for CDBG support to boost Tulsa's small business loan fund

During a recent meeting of the Tulsa HUD Community Development Committee, discussions centered on the critical role of Community Development Block Grant (CDBG) funding in supporting local small businesses. Advocates highlighted the success of the Tulsa Development Corporation's (TDC) small business revolving loan fund, which has provided essential financial support to entrepreneurs in under-resourced neighborhoods.

Over the past decade, CDBG funds have enabled TDC to offer flexible, low-cost loans to businesses that often struggle to secure traditional financing. This funding has been pivotal in creating and retaining thousands of jobs, particularly in low- and moderate-income areas where access to credit is limited. The committee heard compelling examples, such as the Shops on Peoria and Oasis Fresh Market, which illustrate how strategic loans can revitalize entire corridors, attracting private investment and enhancing community pride.

The TDC emphasized that every dollar allocated to the revolving loan fund is not a one-time expense; as borrowers repay their loans, the capital is reinvested into new businesses, multiplying the impact over time. The projected job creation cost per job from these loans is significantly lower than national benchmarks, showcasing the effectiveness of this funding model.

In response to questions about loan performance, TDC representatives reported a surprisingly low default rate of under 5%, attributed to their flexible repayment terms that prioritize working with borrowers to avoid foreclosure. This approach fosters a supportive environment, encouraging entrepreneurs to engage with TDC for payment modifications when needed.

The committee's support for continued CDBG funding is seen as vital for sustaining this successful model, which not only fuels economic growth but also strengthens the fabric of Tulsa's communities. As the city looks ahead to its 2025-2029 consolidated plan, the focus remains on leveraging these funds to ignite further local success stories and enhance the overall economic vitality of Tulsa.