Harlingen Emergency Loan Program

Amount

Loans up to $10,000

Term

Amortized over a period of 36 to 60 months.

Repayment

Repayment of loan will begin one year after disbursement of funds

Eligibility

50 or fewer full time equivalent* employees in Harlingen.

Harlingen’s Emergency Loan Program (HELP) for Small Business, provides interest free loans of up to $10,000 to qualified businesses in Harlingen.

How it works:

  • Business owners must apply online here to begin the application process.
  • Loans will range in value up to $10,000 and will be approved based on such factors as need, location, planning, eligibility and availability of funds.
  • Funds may be used for expenditures which could include payroll costs, rent, utilities, cost of goods sold, inventory, and other ordinary costs of doing business as outlined in the HELP program guidelines.

Repayment terms:

  • Repayment of loan will begin one year after disbursement of funds, as set out in loan documents.
  • Payments will be amortized over a period of 36 to 60 months based on the borrower’s ability to pay.
  • A personal guaranty signed by the applicant/owners of the business will be required for this loan program.

Eligibility:

In order to qualify for a HELP loan of up to $10,000, a business applicant must:

  • Be located within the Harlingen City limits.
  • Have applied for an EIDL (Economic Injury Disaster Loan) with the Small Business Administration or a PPP (Paycheck Protection Program) through a local lender, didn’t take the loan, or has not received funding, or if the applicant did take a loan(s), then the applicant should provide information as to why more funding is needed.
  • Show a loss of revenues greater than 10% during this crisis period versus last year or if a new business, versus the previous 6-month average, or the business could provide evidence of extreme hardship.
  • Have 50 or fewer full time equivalent* employees in Harlingen.
  • Commit to staying in Harlingen.

Filing Requirements:

  • Completed online HELP Application
  • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  • Personal Financial Statement completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20 percent or more of the applicant business, and each general partner or managing member. 
  • Schedule of Liabilities listing all fixed debts.
  • Profit and loss statements or other documentation showing a financial loss of 10% or more during the period from March 1, 2020 through the date of the application or Monthly Sales Figures beginning 3 years prior, if applicable, to the disaster and continuing through the most recent month available. 
  • A narrative of the economic need and proposed use of funds.

Documents:
(click on document name highlighted in red to download)

  • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  • Personal Financial Statement completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20 percent or more of the applicant business, and each general partner or managing member.
  • Schedule of Liabilities listing all fixed debts.
  • Profit and loss statements or other documentation showing a financial loss of 10% or more during the period from March 1, 2020 through the date of the application or Monthly Sales Figures beginning 3 years prior, if applicable, to the disaster and continuing through the most recent month available.
  • Other documentation deemed as necessary by the HELP Committee or HEDC staff

In order to qualify for a HELP loan of up to $10,000, a business applicant must:

  1. Have applied for an EIDL (Economic Injury Disaster Loan) with the Small Business Administration (SBA), or
  2. Have applied for a PPP (Paycheck Protection Program) loan through a local lender; and
  3. Has not taken the loan or has not received funding, or
  4. If the applicant did take an EIDL or PPP loan, then the applicant must substantiate the need for more funding in an explanation in the narrative section of the application.

The applicant must also:

  • Show a loss of revenues greater than 10% during this crisis period versus last year,
  • or if it is a new business, show a loss of revenues greater than 10% versus the previous 6-month average of monthly sales, or
  • Provide evidence of extreme hardship, and
  • Have 50 or fewer full-time equivalent* employees working in Harlingen as of March 1, 2020, and
  • Commit to staying in Harlingen throughout the term of the loan

The program will begin accepting applications on May 1st.

Apply Now

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To the extent permitted by law, the HEDC will maintain the confidentiality of financial and other proprietary information required to be submitted as part of the application process. As an entity subject to the Texas Public Information Act, the HEDC may be required to disclose certain information in response to specific requests

*As it applies to HELP, Full-Time Equivalents (FTEs) are defined as 1,664-hours worked per year or 32-hours worked per week per position or job. Part-time employees or positions can be combined to equal one FTE. To qualify for HELP, businesses with 50 or fewer employees should not exceed 83,200-hours worked per year for all employees combined.  If the applicant uses FTEs for this eligibility requirement, the applicant MUST provide sufficient documentation to show how the number of employees was calculated, which could include payroll records, F941, and TWC reports.

Formula to determine total combined FTE's:
Total annual employee hours worked/1,664 = Number of FTEs
Example: 83,200/1,664 = 50 FTEs

Raudel Garza or Tania Hernandez
rgarza@harlingenedc.com
(956) 216-5082