Copperas Cove area businesses and non-profits could borrow up to $80,000 in an effort to help grow jobs in the city.
The city announced last week its Revolving Loan Fund, a grant given to the city by the U.S. Department of Housing and Urban Development, is once again available for Copperas Cove area businesses and non-profit organizations.
"The city received the funds for the intent purpose of having a financing method for businesses and non-profit," said Ryan Haverlah, the city's budget director. Specifically, this grant is to help with "job creation and job retention within our city."
The no-interest loans have helped meet the city's goal of creating permanent jobs in the past, said Haverlah.
The latest loan was administered to the Armed Services YMCA in 2010 for the installation of air-conditioning equipment at their facility, said Haverlah. And the oldest loan for which the city is still receiving payments is from 1999.
Monies from this loan have been used for facility upgrades and construction, for example, said Haverlah.
Since the loan originates from the U.S.department, there are several qualifiers for a loan to be administered from the city to a business applying for the funds.
According to city documents, one full-time job must be created for each $25,000 lent and the job should be targeted to low-income person who fall below the Housing and Urban Development Section 8 income levels. In Coryell County, that means $31,300 for a single person family and $59,050 for an eight member family.
Funds can not exceed one-third of the projects total cost unless a non-profit is applying then 100 percent of equipment cost could be funded.
The businesses also must be located within the city or within the city's extra territorial jurisdiction, according to the documents.
There are also several regulations prohibiting the funds being used to relocate a business from other states and cities.
Revolving loan funds are generally used when businesses can't qualify for full loans from banking institutions, said Haverlah.
"The purpose is to provide a financing method for private business that do not meet the more strict requirements of banks," he said. "The banking institutes have been notified about this process, and if they have a potential client that they could not help, they could refer that client to us to submit an application."
While Haverlah did not know how long the program has been going on in Copperas Cove, he said the grant is unique because it allows the city to continue to place the money back into the community once the principal amount is paid.
"These funds we received were given a long time ago, and we keep recycling them back into the community," he said.
Contact Mason W. Canales at firstname.lastname@example.org or (254) 501-7474. Follow him on Twitter at KDHCoveEditor.
Contact Mason W. Canales at email@example.com or (254) 501-7474