City considers EDC small business loans

By FRANCISCO E. JIMENEZ
Staff Writer
reporter@sbnewspaper.com

cashThe San Benito City Commission planned to take action on an interlocal agreement between the city and the San Benito Economic Development Corporation at its regular meeting on Tuesday.

The agreement, if approved, may consist of the city providing a $100,000 matching loan to the EDC.

“We applied for a $400,000 loan,” EDC Director Solomon Torres said on Tuesday. “This item is on the agenda (for the city commission meeting) so when we apply, the city agrees to provide a match of $100,000.”

The monies are distributed by the EDC as loans to small businesses.

“The San Benito EDC has a loan program for small businesses,” Torres said. “We applied for federal loans and received them so we can start the small business loan program.”

Torres said that when the EDC previously acquired a loan of $248,000, the city put in a match of $63,000, creating a fund of $311,000 for small businesses lending.

“We’ve already given out two loans, so we have $121,000 left over,” said Torres. “We think the $121,000 will be lent out to other applicants soon, but we don’t want to be left with nothing.”

Attempts to reach City Manager Manuel Lara and Mayor Joe H. Hernandez for comment were unsuccessful.

Read this story in the Feb. 6 edition of the San Benito News, or subscribe to our E-Edition by clicking here.

Permanent link to this article: https://www.sbnewspaper.com/2013/02/05/city-considers-edc-small-business-loans/

2 comments

  1. SB need a donut shot for a groovy hang out for all the locals to discuss politics. You can do It!

    • WeThePeople on February 6, 2013 at 10:15 am
    • Reply

    Since the City runs the EDC, how does the City loan money to itself?

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