San Antonio nonprofits are offering low or no interest loans to help small businesses that struggle to get capital from banks.

LiftFund and San Antonio for Growth on the Eastside (SAGE) both announced loan programs for local businesses last week.

LiftFund is partnering with the City of San Antonio to provide $500,000 for no-interest loans this year.

“Funds may be used for working capital, equipment, inventory, or startup expenses, with a focus on supporting entrepreneurs who may not qualify for traditional financing options,” read the city’s press release.

Applications for loans between $500 and $100,000 are now open and are available to any business in San Antonio.

SAGE received a $800,000 federal grant to start its own revolving loan program targeting East Side businesses. James Nortey, SAGE’s CEO, said the program’s first four businesses have already been selected, but he hopes to expand the program.

“We’re looking for other grant opportunities to open this up,” he said.

SAGE’s program will have flexible interest rates, depending on business needs and risk, Nortey said, but those interest rates will be below market rate.

Both programs are trying to bridge a gap between small businesses and bankability. Nortey said that some small businesses can have a harder time getting capital or credit from banks, or have to take on higher interest rates to get banks to loan them money.

These types of programs fill in that space, giving businesses that might not qualify for bank loans the support and funding to grow.

Loans from the city and LiftFund will focus on such businesses with an emphasis on increasing employment in San Antonio.

“Priority will be given to businesses that have been unable to secure traditional commercial financing and that plan to create at least one full-time job as a result of the loan,” said the city’s press release.

Small business owners interested in LiftFund’s program can apply online or call 888-215-2373 for assistance.

SAGE has already selected the first round of businesses for loans, Nortey said, but plans to grow the program in the future.

“We had already established a relationship and we understand what some of their challenges are,” Nortey said. “They were also committed to the East Side.”

James Nortey of San Antonio for Growth on the East Side answers questions during the San Antonio Report’s CityFest 2025. Credit: Amber Esparza / San Antonio Report

SAGE selected businesses that had participated in the nonprofit’s other small business support programs and who were connected to the East Side’s business community.

One of the benefits of a loan fund, Nortey added, is that when businesses repay those loans, the money can be loaned out again to new businesses. SAGE is pursuing more grants to grow its loan fund, Nortey said. In the meantime, the $800,000 loan fund should be renewed by 2029.

LiftFund has offered microloans to San Antonio small businesses for decades and has partnered with the city since 2016.

LiftFund CEO and President Amy Hereford said the small businesses it has worked with have been dependable and often prioritize repaying the nonprofit’s loan. 

LiftFund works closely with its loanees and sees a repayment rate above 95% when it collaborates with the city, she said. LiftFund has worked with the City of San Antonio to deliver more than $13.1 million to more than 400 businesses in the last nine years, according to the city’s press release.

“This new zero percent interest program continues that legacy ensuring that access to capital is never the barrier to growth and opportunity,” Hereford said in a statement.