Texas Border Business
The City of McAllen in partnership with the McAllen Chamber of Commerce launched the McAllen Small Business Support Fund to provide funding to small businesses in McAllen affected by the COVID-19 pandemic. The City of McAllen will disburse American Rescue Plan Act funds, in the amount of $4,000,000, to provide grants and loans up to $30,000 for businesses in McAllen with no more than 100 employees and with a gross revenue not to exceed $3 million.
The goal of the funding program is to incentivize our local economy by helping small businesses in McAllen stay afloat. This will be accomplished through funds that may be used for paying rent, utilities, insurance, legal aid, short-term marketing campaigns, and COVID-19 preventive measures such as purchasing PPE and accommodating physical location to meet CDC guidelines, amongst other valid expenses.
Funds will be distributed on three levels: Level I – $10,000; Level II – $20,000 and Level III – $30,000 and level funding qualification will be strictly decided on the revenues of the business’ 2019 submitted tax return. Level I funding will be considered a grant; at Level II, $10,000 will be considered a grant and $10,000 will be considered a deferred forgivable loan over 12 months. Level III funding will award a $10,000 grant and $20,000 will be considered a deferred forgivable loan over 24 months.
“Small businesses are experiencing severe financial distress due to the economic impact of COVID-19,” said Blanca Cardenas, Interim CEO/President of the McAllen Chamber of Commerce. “We are proud to further our partnership with the City of McAllen to help small business owners in our community stay afloat after this unprecedented experience which still continues to affect local businesses especially hard.”
Qualifying businesses include those that operate within McAllen city limits; were established before March 1, 2020; and must be able to demonstrate that the business was affected by the pandemic with loss in gross receipts from 2019 to 2020.
Funds will be disbursed for eligible project expenses and paid via third-party, directly vendors. Periodic reporting will be performed, depending on funding level at the six-month, 12-month and 18-month intervals.
Applications opened on January 10, 2022, at 10:00 A.M. The application process requires the following documentation: Secretary of State Texas file number; SSN: owner’s Texas driver’s license number; employer identification number; signed 2019 and 2020 tax return; and proof of a valid McAllen business location. The entire application process can be done online.
For more information about the McAllen Small Business Growth Fund or its rules, please visit grant.mcallen.org.
