COVID-19 EMERGENCY LOAN PROGRAM
The San Benito Economic Development Corporation is implementing a COVID-19 Emergency Loan Program to provide assistance to For-Profit local businesses suffering from financial impacts related to the COVID-19 (coronavirus) pandemic. This program is possible and pursuant to the authority of the EDC under Sec. 505.103, Local Gov’t Code and the EDC Board’s intent to promote local businesses during this unprecedented time.
This program is temporary, and the EDC has made $100,000 available for this program. Applications will be accepted between August 15, 2020 and December 31, 2020. Loans will be awarded until funds are depleted or until December 31, 2020, whichever one comes first.
This program is only available as a last resource; business MUST HAVE APPLIED AND BEEN DENIED by the Small Business Administration on any COVID-19 related loan applications.
The purpose of this program is to provide working capital for personnel costs, rent, utilities, etc. for existing small business enterprises within the city limits of San Benito, Texas.
Applicants must also provide documentation of efforts to apply for other loans by other financial institutions or lenders such as People Fund and Lift Fund;
The business for which the application is being submitted, must be located within the city limits of San Benito, TX.
Businesses must be brick and mortar and must be in compliance with all applicable zoning, land use, and other city related ordinances.
Business must generate sales, contribute to the sales tax base of the city and/or create economic impact such as job creation.
Home based businesses or vendors operating inside another business are NOT eligible for this program.
USDA Intermediary Revolving Loan Program recipients are NOT eligible for this program.
APPLICATION REQUIREMENTS & CONSIDERATION
The applicant must:
1. Provide proof of ownership of the business, or proof that the owner of such business has approved the application for loan funds;
2. Provide Assumed Name Certificate/Doing Business As (DBA) certificate or proof that business has been filed/registered with County and State;
3. Provide copy of business’s sales tax permit;
4. Provide two (2) years of submitted sales tax reports when applicable, if not include an explanation as to why they are not available;
5. Provide a copy of the business plan;
6. Provide copies of past two (2) years of business tax returns;
7. Provide proof that payroll taxes have been withheld and remitted;
8. Submit a balance sheet and profit-and-loss statements for the last six months.
The EDC is the sole and final authority in determining eligibility for funding. The award will still require for city commission approval based on EDC Board of Directors recommendation to award.
Only completed and signed applications will be considered. Incomplete applications without the required documents will not be accepted.
To the extent permitted by law, the EDC will maintain the confidentiality of financial and other proprietary information required to be submitted as part of the application process.
As an entity subject to the Texas Public Information Act, the EDC may be required to disclose certain information in response to specific requests.
TERMS & CONDITIONS OF THE COVID-19 EMERGENCY ASSISTANCE LOAN
The EDC will provide loans in an amount not to exceed $10,000.
The loans will have a 36-month repayment schedule and will not be charged interest if paid in full by the maturity date.
A promissory note must be executed.
There will be a payment deferment of twelve (12) months. This means that the loan recipient will start making payments on the note until twelve (12) months after the award of the loan; for example, if the loan is made in August 2020, then the loan recipient will start making payments towards the note on September 2021.
If awarded an agreement will need to be signed that stipulates a guarantee that the San Benito EDC will have a method to recover the loan amount in the event the borrower defaults on the loan.
SUBMITAL OF COMPLETED APPLICATION
For questions in reference to the COVID-19 Emergency Assistance Loan Program, please contact Rebeca Castillo, EDC Executive Director at (956) 626-1350 or via email at email@example.com
Completed applications with all required documents must be submitted to the San Benito Economic Development Corporation. Submissions by email are preferred and may be emailed to firstname.lastname@example.org
The completed application (hard copy) may also be delivered in person or via mail to 701 N. Bowie Street, San Benito, TX 78586.
Please note that our lobby is currently closed to the public, but you may be assisted via phone at (956) 626-1350 or via email at email@example.com
For an in person visit, please contact us at the phone or email above and we will gladly schedule an appointment.
U.S. Department of Agriculture Revolving Loan Program
The San Benito EDC in collaboration with the U.S. Department of Agriculture provides the Revolving Loan Program which facilitates the lending of a maximum of $150,000 and has a ten (10) year repayment plan. The small business must be within the San Benito City Limits, 25% equity and collateral must be provided. To be candidate for this loan the small business owner must be denied by other lenders such a local banks, Small Business Administration, LiftFund, PeopleFund, etc.
For more information, application package, or to schedule an appointment contact:
Rebeca Castillo, EDC Executive Director
Phone: (956) 626-1350 | Email: firstname.lastname@example.org
Downtown Commercial Façade Improvement Grant
The San Benito Economic Development Corporation (San Benito EDC) Downtown Commercial Façade Grant Program is an opportunity for the San Benito EDC to assist businesses in making storefront improvements, promote downtown revitalization, support local businesses, and encourage new business startup.
These guidelines are provided to assist applicants in understanding the types of improvements that the San Benito EDC desires to support. Priority will be given to projects that address the following goals:
• Improve the condition and appearance of the building’s façade (storefront) and other site elements visible from the public right-of-way (roadway).
• Promote collaboration between businesses to attract additional tenants and investment in downtown.
• Rehabilitate commercial buildings to be attractive and compatible with their surroundings.
• Create functional and safe buildings, while improving customer access.
• Eliminate building elements that convey a sense of neglect, disrepair, or abandonment.
• Restoration of storefronts to their original historic status/design.
FUNDING & ELIGIBILITY
The San Benito EDC offers a fifty percent (50%) reimbursement grant for eligible businesses that are located within the designated/eligible corridor and to be used to improve the appearance of their building and business site.
Grant amounts are as follows:
Façade grants (front / entrance area of building) are available up to $10,000 ($20,000+ total project).
Sign only grants are available up to 50% of cost for up to $1,500 $1,000 ($1,000+ total project).
Paint only grants are available up to $5,000 ($10,000+ total project).
Properties may receive multiple awards, however, regardless of applicant (tenant or property owner), single-tenant buildings are limited to $10,000 per property over five years while multi-tenant properties are limited to $20,000 per year, up to $100,000 per property over five years.
Applicants must be current on personal and business property taxes and sales tax payments. When the applicant is not the property owner, the property owner must be current on personal and business property tax payments.
Buildings must have commercial use as their primary purpose (such as, but not limited to: retail, services, restaurant, cultural venue, professional offices, and manufacturing). Mix-use buildings are eligible as long as the ground floor is over fifty percent (50%) commercial use.
For more information, application package, or to schedule an appointment contact:
Victoria Padron, Economic Development Specialist
701 N. Bowie Street, San Benito, TX 78586
Phone: (956) 626-1350 | Email: email@example.com
This grant provides an opportunity for the San Benito EDC to partner with organizations by supplementingf unding towards the marketing efforts of a community event or initiative that will showcase San Benito, TX and promote the city for the purpose of developing new or expanded business opportunities, tourism and other economic development efforts that contribute to the city’s sales tax base.
San Benito Economic Development Corporation
701 North Bowie Street San Benito, TX 78586
PHONE: (956) 626-1350
Copyright © 2020
San Benito Economic Development Corporation - All Rights Reserved.
Last Updated November 6, 2020