Numerous loans may be available to qualifying businesses relocating or expanding. The Katy Area EDC will provide comprehensive information about loans to fit the needs of your business.
The Texas PACE Authority (TPA) offers an innovative financing program that enables commercial, industrial, large multi-family, and agricultural property owners to obtain low-cost, long-term financing for water conservation, energy-efficiency, and distributed energy projects. Participants repay those loans through a property assessment paid to the county. PACE has great potential to directly affect a business' bottom line - a project's utility savings offset the cost of installing the project, in most instances resulting in an immediate positive cash flow. PACE complements existing rebate and incentive programs. The TPA takes a market-based approach to energy finance and economic development. This uniform "plug and play" model, known as PACE in a Box, is available at no cost to counties and municipalities throughout Texas. The TPA is available in the City of Houston, Houston Extraterritorial Jurisdiction of the Katy area and Fort Bend County.
Industrial Revenue Bonds
This program provides long-term, low interest financing, up to $10 million and is federally tax-exempt for fixed assets and soft costs secured by a bank Letter of Credit (LOC). IRB’s may finance up to 100% of the cost of a project with minimum amount of $4,000,000. Tax-exempt bonds are exempt from federal income taxes and limited to manufacturing or other projects according to federal law, and must be issued by local industrial development corporations. Approval is required from the Texas Bond Review Board and must receive approval from the Texas Department of Economic Development and also by the Attorney General's Office.
USDA Business and Industrial Loan
This is a guarantee program with loans provided by local lenders. The primary purpose of this loan is to create and maintain employment and improve the economic climate in rural communities. The Katy Area has a significant eligible territory. Eligible loan purposes are business and acquisitions, constructions, expansion, repair, modernization, development costs, working capital and start-up costs. Loan guarantees begin at $750,000 are limited to a maximum of $25 million per borrower for terms up to 25 years depending on loan purpose. Interest rates are at bank rates. Some areas west and south of the City of Katy in Fort Bend, Waller County and parts of Harris County are eligible for this funding.
USDA Intermediary Relending Program (IRP)
The purpose of program is to alleviate poverty and increase economic activity and employment in rural communities. Under the program, loans are provided to (intermediaries) like Katy Area EDC for the establishment of revolving loan funds. These revolving loan funds are used to assist with financing business and economic development activity to create or retain jobs. An EDC may borrow up to $750,000. Ultimate recipients may borrow up to $250,000. Eligible projects include acquisition, construction, conversion, enlargement, or repair of a business or business facility, land equipment, leasehold improvements, machinery, and supplies; start up costs and working capital; pollution control and abatement. Some areas west and south of the City of Kat yin Fort Bend and Waller County are eligible for this funding.
Economic Development Administration Revolving Loan Fund
This is a gap financing program to help small businesses that are recovering from Hurricane Harvey. Loan amounts range between $30,000 and $150,000 and must create one job per $65,000 of loan proceeds. Funds can be used for building repairs and improvements, equipment, furniture, and inventory. No more than 50% of a loan may be for working capital. Terms are up to 10 years.
Katy Area Bank Alliance
As one of a few economic development organizations in the Houston Region that has a Bank Alliance, the mission of the Alliance is to improve the ability of local financial institutions to finance economic development projects and thereby create jobs and capital investment in the Katy Area. The purpose is to review commercial projects and possibly pool and participate loans, increase communication, interaction, and cooperation among Katy Area banks and financial institutions. Through the leadership of Katy Area EDC, several Katy Area Banks have come together to form the Katy Area Bank Alliance. Banks must be a member of the Katy Area EDC to participate in the Alliance. Standard bank credit requirements apply. The chart of participating banks is noted below.
|Allegiance Bank||Vidal Ramirez||http://www.allegbank.com/|
|Amegy Bank||Adam Traweek||http://www.amegybank.com/|
|Brazos Valley Schools Credit Union||Yvonne Kershner||http://www.bvscu.org/|
|Commercial State Bank||James Alexander||http://www.csbec.com/|
|Members Choice Credit Union||Bruce Hurta||http://www.mccu.com/|
|Mercantil Bank||Jo Ann Miller||http://www.mercantilbank.com/|
|Prosperity Bank||Craig Brooks||http://www.prosperitybanktx.com/|
|Regions Bank||Stephen Atwell||http://www.regions.com/|
|Texas Capital Bank||John Kallina||http://www.texascapitalbank.com/|
|Westbound Bank||Troy England||http://www.westboundbank.com/|