For more information about this program please contact Mario Palomo at 956-402-4190 ext. 1602.

The PEDC Revolving Loan Fund (RLF) is designed to assist small and emerging businesses with projected gross revenue less than $1 million and who employ 50 or fewer employees.

•    Establishment of new businesses and/or expansion of existing business
•    Creation of employment opportunity and/or saving of existing jobs

•    Individuals, public or private organizations, or other legal entities, with authority to incur the debt and carry out the purpose of the loan.
•    At least 51% of the owners or shareholders of a business must be United States citizens or admitted for permanent residence.
•    Applicants must be unable to obtain the purposed loan elsewhere at reasonable rates and terms.

•    Acquisition and development, of land, easements, and rights-of-way.
•    Construction, conversion, enlargement, repairs or modernization of buildings (include façade repairs), plants, machinery, equipment, access streets and roads, parking areas, utilities, and pollution control and abatement facilities. (please call first)
•    Loans for startup operating cost and working capital.
•    Technical assistance for private business enterprises.
•    Project/Business to be assisted must be physically located within the City of Pharr, Texas

•    Agricultural production
•    Comprehensive area-wide planning
•    Funding a part of a project which is dependent on other funding unless there is firm commitment of the other funding to ensure completion of the project.
•    Applications by members of the loan committee and their immediate family members shall be ineligible for funding.

•    Loans from revolving loan fund will not exceed the level of available funding in the RLF fund account and/or not exceed $10,000 or 75% of the total project cost, whichever is less.
•    The EARC may authorize loans smaller than the above values on a case by case basis.

Loan terms will be amortized based on the life of the security.  The EARC shall make recommendations to the PEDC Board who will determine the term.

The interest rate will typically range from 1%-10%.  The EARC shall make recommendations to the PEDC Board who will determine the rate.

Loan Qualifications
Application Process and Forms:

1.    Pharr Economic Development Corporation (PEDC) will accept no pre- or full applications excepting those which are submitted through the offices of the City of Pharr.
2.    No application shall be accepted by the PEDC office that is determined to be incomplete or that is not signed by the applicant.
3.    Applications will be considered for financing in the order of receipt.
4.    All applications must be prepared and submitted on the approval of PEDC IRP application forms, to the extent feasible.

Compliance with Federal, State and Local Requirements
1.    Environmental Review, consisting of at least an initial environmental examination or extended impact study if necessary.
2.    The applicant shall be required to sign a Certification of Assurances to comply with the requirements of this plan as applicable.

Use of Proceeds
1.    Proceeds may not exceed 75% of the total project (maximum loan request of $10K).

1.    Assets being financed – first line of security
2.    Appraisals required on real estate loans (Brokers opinion acceptable for loans; $20,000)
3.    Personal guarantee
4.    Assignment of life insurance on all key owners
5.    Hazard insurance
6.    Additional security, if necessary
7.    Mortgage Insurance Protection, Title Policy
8.    UCC-1 searches and credit reports provided by applicant

1.    Letter of denial from lending agencies
2.    Loan Application/Processing fee – shall be in the range of $1,000 – $3,000 – to be paid at closing.  The EARC shall make recommendations to the PEDC Board who will determine the fee.
3.    The PEDC Board must approve each loan request made under the PEDC Revolving Loan Program
4.    The University of Texas – Pan American Small Business Development Center is available to provide technical assistance for business consulting, planning, research, and training.


2412 S. Closner,
Edinburg, Texas


(956) 292-7538 Office
(956) 292-7561 Fax

For more information about this program please contact Mario Palomo at 956-402-4190 ext. 1602.

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