Loans

Texas Pace Authority (TPA) - Energy Loans

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. Travis County launched Texas' first PACE program with $1.5 M redevelopment of a retail mall owned by Simon Property Group. In the next few months, the TPA expects ~$50M in projects around Travis County, benefiting a range of nonprofits, industrial sites, office buildings, and retail facilities. The TPA is available in the City of Houston, Houston Extraterritorial Jurisdiction of the Katy area, and is working to bring the PACE program to Fort Bend County in 2016. 

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 and Waller County are eligible for this funding.

Sales Tax Bonds – City of Fulshear

Sales Tax bonds do not fall under the volume cap and are eligible to communities that have passed the economic development sales tax. Ineligible projects include for-profit hospitals, multi-family projects, and municipal services.

Texas Leverage Fund – City of Fulshear

The Texas Leverage Fund (TLF) is an “economic development bank” offering an added source of financing to communities that have passed the economic development sales tax. The Texas Economic Development and Tourism Office may loan funds directly to a local Industrial Development Corporation (IDC) to finance eligible projects. Sales tax revenues pledged by the IDC need only be sufficient to cover projected annual debt service as specified in the Texas Leverage Fund Program Guidelines.

Texas Small Business Fund

Administered by the Texas Economic Development Bank, this program provides financing to assist small businesses in Texas. The Fund is a revolving loan program with capital provided from $20 million in taxable bonds issued in 2005. Preference is given to “Growth Stage” companies in industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and bio-medicine; renewable energy; agriculture, aerospace and small businesses that have received financing Small Business Development Centers (SBDC) or the Small Business Innovative Research program (SBIR). Interest rates are generally lower than bank rates.

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 Ike. 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 only three 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. The mission of the Bank 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 of the Alliance is to review commercial projects and possibly pool and/or participate loans and increase communication, interaction and cooperation among Katy Area banks and financial institutions. 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.

Bank Contact Website
Allegiance Bank Vidal Ramirez www.allegbank.com
Amegy Bank   www.amegybank.com
Brazos Valley Schools Credit Union Yvonne Kershner www.bvscu.org
Commercial State Bank   www.csbec.com
Members Choice Credit Union Bruce Hurta www.mccu.com
Prosperity Bank Craig Brooks www.prosperitybanktx.com
Regions Bank   www.regions.com
Westbound Bank   www.westboundbank.com

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