With businesses allowed to open at 100 percent capacity in Texas, COVID-19 cases continuing to go down and vaccination rates going up, there are still many local entrepreneurs who have not been able to recover from the devastating economic effects of the pandemic.
To help the small businesses that have suffered due to the pandemic, the Brownsville Community Improvement Corporation (BCIC) and the City of Brownsville’s Planning and Redevelopment Department are partnering to launch the (Re)Open for Business Forgivable Loan Program.
The loan, which is part of the StartUp Texas program, is designed to provide financial relief needed to strengthen local small business enterprises that are enduring hardship during the COVID-19 pandemic.
This loan program is a short-term 0% interest forgivable loan program up to $10,000 to assist businesses with up to 15 employees at the time of application, or up to five employees (including owner) with low to moderate income owner, the official website reads.
“This loan will have a three-year term at a 0% interest rate,” the official website reads.
“If the business is able to retain at least one low- or moderate-income full-time employee or equivalent for the first six months after the receipt of loan funds, business remains in good standing and is operating at current or more occupancy at the time of application submission, then the loan will be completely forgiven.”
The business must demonstrate a loss of gross revenue of 20% or more in 2020 as a result of the COVID-19 pandemic to be considered for funding. The loan program is to assist in operations of the business including payroll, inventory and working capital.
“Under this program, the BCIC will provide micro-loans to businesses negatively affected by the COVID-19 virus,” the official website reads.
“Businesses with fifteen or fewer employees are eligible to apply for funds, which will be used to pay for normal businesses expenses that have been made more difficult due to declining revenues caused by the COVID-19 virus.”
The application states that to meet the threshold for this loan there must be sufficient documentation that the jobs would have been lost without the loan assistance.
This will include the certification provided by downloading and completing the Self Certification of Income Form, for a full-time equivalent (FTE) low/moderate income employee or a business owner included with the online application.
For more information, visit brownsvilleedc.org/covid19
Deadline to apply is May 28.
