EDC offers $400k in small business loans

By HEATHER CATHLEEN COX
Staff Writer
Reporter@sbnewspaper.com 

The San Benito Economic Development Corporation held the first in a series of Small Business Loan Workshops at the City Municipal Building on Thursday, Jan. 22, where counselors were available to speak with individuals in need of monetary assistance to establish, repair or grow their San Benito-based businesses.

The EDC was awarded a $400,000 federal loan on Oct. 22. Of available funds, EDC Executive Director Salomon Torres said, “We can make loans ranging anywhere from $10,000 – 150,000.” Furthermore, Torres added, “We also committed $100,000 (in funding). That’s half a million dollars in available funds.”

Torres explained that interested applicants are able to receive free consultations, free counseling and assistance with developing their business plans. “Financing should no longer be a reason not to start or expand a business,” Torres said.

Last year, the EDC reportedly received a $200,000 loan. “We matched that with $62,000,” said Torres. He continued that $34,000 of that loan remains unused at this time. Liberty Tax Service, New Beginnings Daycare and RPM Manufacturing were the beneficiaries of what is referred to as the San Benito Revolving Loan Fund (RLF) Program.

In order to promote economic development within the City of San Benito, and with assistance from UDSA – Rural Development, the EDC established the RLF program, a self-sustaining program which works by lending out an initial pool of money. The money is repaid with interest at which time it becomes available to future borrowers.

According to EDC officials, loan terms and conditions may vary depending on the following: the project; the applicant’s financial need; and type of asset used as collateral. Types of collateral accepted by the EDC are land, buildings, cash and equipment. Torres said, “We have low interest rates, (around) 6 percent, and (borrowers) can have up to 10 years to repay.”

To date, the program has already received $57,000 in repayment funds. This money rolls into the other available funds, said Torres, “so the pot can keep growing.”

“For a city the size of San Benito,” said Torres, “this is very significant. San Benito was the only entity in the Valley that received this award.”

Loan funds received may be utilized for working capital, start-up costs, construction work, repairs, renovations, property purchases, equipment purchases and business expansion.

“We want folks from San Benito to dust off those big plans they’ve always had on the shelf … that they’ve been putting off,” Torres said. “The day is now here. We are offering the capital.”

In order to qualify for this program, a business must be located in San Benito, although exceptions could be made for businesses outside the city limits that contribute to the City’s economy.

The EDC plans to host additional workshops later this year. For more information, call (956) 361-3804, ext. 302 or 307.

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