San Benito Economic Development Corporation Executive Director Solomon Torres is seen speaking at an event on Thursday celebrating the administration of a small business loan to a daycare center on Stenger Street. (Staff photo by Francisco E. Jimenez)
By FRANCISCO E. JIMENEZ
Staff Writer
reporter@sbnewspaper.com
The San Benito Economic Development Corporation held a ceremony commemoration for a local establishment taking advantage of the small business loan program.
EDC Executive Director Solomon Torres said the event also served as an open house to raise awareness about said program.
“We wanted anyone interested in the small business loan program to come see what it’s all about,” said Torres.
The business of which the EDC was presenting during the open house is New Beginnings Day Care Center, which will be located at the 1500 block of East Stenger Street, owned by Dalia Rodriguez.
Rodriguez has been a small business owner for 25 years. Prior to opening New Beginnings, she owned Kids Paradise Day Care Center, located on the 900 block of South Sam Houston Boulevard.
When asked how she felt about acquiring a small business loan through the EDC, she said that she highly recommends it.
“It has been an easy process, it is not at all hard,” said Rodriguez on Thursday following the open house ceremony.
Torres described the loan as a ““revolving door” loan.
“People interested in getting a loan have got to have good credit standing and have their personal financial info submitted for review by loan review committee,” said Torres. The loan committee operates with two bankers and one business manager.
“We started off with a $248,000 fund, then we added $63,000 with the City (of San Benito) and EDC match in order to create our revolving loan fund,” continued Torres. “It’s called that because all of the money lent through the program, when paid back, is put back into the fund in order to build up again for another loan for someone else.”
According to Torres, the $248,000 fund together with the $63,000 match brings the initial total available funds to $311,000. The first loan went to David Perez of Liberty Income on the 200 block of North Sam Houston Boulevard. Perez acquired a loan for $40,000 to help cover repairs for the building he rented, which he paid for out of pocket.
The $40,000, plus the $150,000 loan taken by Rodriguez, brought the total amount of funds lent out to $190,000, from the original $311,000 available, leaving the EDC with $121,000 in available funds.
Torres said that loans must be a minimum of $10,000 but can be approved for as much as $150,000. With there being only $121,000 available funds at the moment, the EDC has applied for a $400,000 loan from the USDA to add to the available funds.
“I would encourage anyone to visit our offices and explore business plans,” said Torres. “They will get guidance from our program. We have a consultant who helps the applicant to determine if they are in good financial standing, then it’s up to the owner to see if they want to go forward. They just need to remember it’s a loan, not a grant.”
Read this story in the Feb. 24 edition of the San Benito News, or subscribe to our E-Edition by clicking here.
1 comment
While the new Director appears to be doing well in his new position, just to set the record straight…the previous EDC director, Alma Colleli, and the previous board of directors with Bill Elliott as chair are responsible for initiating the revolving loan program.