San Benito EDC offers loan program

SAN BENITO — Eduardo Richa has a line on a loan that could help him expand his business.

This week, the city’s Economic Development Corporation announced a program that can lend money to businesses to spark economic development during a national recession that has stunted local job growth, officials said.

“This is exactly what this economy needs to trigger more activity. We need access to capital,” Richa, general manager of Bowman Distributing Co., an aluminum fabricator, said. “Right now, commercial lending is very tight and the approval process is very long and tedious. This is a very streamlined process.”

As part of the program, the EDC will borrow up to $248,000 from a U.S. Department of Agriculture program and grant loans from $10,000 to $150,000 to businesses, Alma Puente Colleli, the EDC’s executive director, said.

“The loan program gives the EDC greater opportunities to help the small business seeking to set up shop in San Benito or a small business seeking to expand,” City Commissioner Bill Elliott, the EDC’s president, said. “It is hard for some small businesses to find a place to get an affordable loan for their business needs. This program is an answer to that dilemma.”

Approved businesses would repay money that would be used for new loans, Puente Colleli said.

“We’ve had a lot of interest,” she said.

The loans, which charge 4 to 10 percent interest, would be repaid in up to 10 years. The interest rate is determined by the applicant’s credit rating, she said.

A three-member EDC committee will review loan applications, she said.

“People were telling me they needed more money to fix the front of their shops, for merchandise or for advertising,” EDC member Shirley Vega said. “They just need a little help. It comes at a perfect time.”

Amelia Corona said she’s considering a $40,000 loan to expand her business, the Warehouse Bar and Grill.

“It’s a godsend,” she said. “My business is growing and I have more clientele so I need to expand the bar to get more customers.”

The program will help the city’s small businesses grow, Corona said.

“It comes at a great time because it’s been hard for everybody, especially small businesses, where you work the place yourself,” she said. “If customers come to our establishment, they’ll go down the street to other businesses.”

Businesses can contact the EDC to apply for the loans.

For more information, call the EDC at 956-361-3804, ext. 307.

fernandodv@valleystar.com