A zero-interest, forgivable loan program to help Brownsville small businesses hurt by the pandemic retain their low- to moderate-income employees has extended its deadline for borrowers to apply, created a new application process that’s much simpler, and opened it up to larger businesses.
The application deadline for the Brownsville Community Improvement Corporation’s ReOpen for Business Forgivable Loan Program, a partnership with the city of Brownsville, has been pushed back to noon on June 25. Round one was launched last fall, with $125,000 in loans ultimately going to 14 Brownsville micro-businesses (15 employees or fewer, with at least one low- to moderate-income employee).
Nathan Burkhart, BCIC director of marketing and small business development, said $375,000 in loan funds remain to be spent, which is why the deadline is being extended.
“We were hoping that more people would apply,” he said. “The restrictions were for businesses with 15 employees or less, which is pretty narrow. This second time around we’ve expanded it to 50.”
The 17-page application for round one was also daunting, though it was required by the U.S. Department of Housing and Urban Development, which provided the funds, Burkhart said. Working with the city, however, BCIC was able to shrink the current application to just two pages, he said. The loan program is specific to Brownsville, though in July BCIC plans to launch a loan program with $2 million in Economic Development Administration money that will be open to businesses across Cameron County, Burkhart said.
Cori Peña, BCIC director of community development, said small businesses are one of the things that makes Brownsville unique, but that many of them have been hit hard by the pandemic.
“It’s been very difficult and frustrating for a lot of our small businesses to access capital,” she said. “This program has been carefully crafted … so that the bulk of our resources will go to businesses in our community that need help the most. These forgivable loans are a crucial step towards helping our small businesses recover from the COVID-19 crisis.”
Applications are accepted online only. To apply or for more information visit bcic.submittable.com/submit. Any questions about eligibility or the application process should be emailed to [email protected].
