HARLINGEN — The Harlingen Economic Development Corp. board has decided to absorb up to a half-million dollars in low-interest loans to businesses, in effect freeing qualifying firms from having to make repayment.
It was a year ago this month that the HEDC announced an available pool of $1 million had been set aside for a program called HELP for Small Business, providing zero-interest loans for local companies which suffered losses due to COVID-19 related shutdowns and the related economic slowdown.
The loans of up to $10,000 were to be repaid a year after the loan was made.
“We lent out $489,000 to 52 businesses, and those 52 businesses will now have an opportunity to basically get their loan forgiven if they qualify,” Raudel Garza, Harlingen EDC CEO, said at a recent board meeting.
HEDC officials said city commissioners were onboard with the loan forgiveness plan.
Business owners who received HELP for Small Business funding must still meet specific qualifications to have their loans forgiven, including documentation of how they used the funds.
Those businesses will have to show they used the loan money only for expenses such as payroll, rent, utilities, cost of goods sold or inventory.
The applications for forgiveness of the loans will be evaluated in accordance with the specified guidelines and loan agreement, HEDC officials said.
“We know that our Harlingen business community is essential to the growth and success of our economy,” said Eric Ziehe, the HEDC board president.
“Our business community has shown resiliency in the last year and we want them to continue succeeding, and to continue providing their services that make our city unique,” Ziehe added.
HEDC officials said the largesse of loan forgiveness was possible due to federal funding in response to COVID-19 and the economic impact the money has created.
Recipients of the loans have received the application with additional instructions and may start the application process, HEDC officials said.
