- Emergency Business Loan Program
Mineral Wells Emergency Business Loan Program
The Mineral Wells Economic Development Corporation (MWEDC) has established the Mineral Wells Emergency Business Loan Program to provide assistance in the form of working capital to local small business enterprises suffering from financial impacts related to the COVID-19 (coronavirus) pandemic. The program is created pursuant to the authority of the EDC under Sec. 505.103 of the State of Texas Local Government Code. The intent of the program is to allow businesses to retain jobs during this time of local disaster and, in turn, help to promote and expand local business development.
To be eligible to participate in the program your business must be:
- Located within the corporate limits of the City of Mineral Wells, Texas
- Registered to conduct business in the State of Texas
- In full compliance with all applicable local development and building codes
- A small business of 30 or fewer employees
- A business in which the majority of services or product provided results in collection of sales tax to the City of Mineral Wells
Ineligible businesses/entities include businesses not in operation at the time of emergency declaration on March 19, 2020, as well as nonprofit organizations.
Businesses that have received funds through the Paycheck Protection Program (PPP) or COVID-19 related emergency funds from another federal, state, or local source remain eligible to receive funds through this program; however, priority will be given to businesses that have not received other COVID-19 related emergency funds.
The Emergency Business Loan Program provides funding based upon the size of the local business:
- Up to $5,000 for businesses of 3 or fewer employees (a maximum of $7,500 for any property owner applying for more than one business)
- Up to $10,000 for businesses of 4 to 30 employees (a maximum of $15,000 for any property owner applying for more than one business)
Eligible Business Costs
Funds available through the Emergency Business Loan Program can be used for:
- Personal Protective Equipment and similar COVID-19 related safety and sanitation needs
- Working capital
- Payroll expenses, including healthcare benefits
- Supplier payments
- Machinery and equipment
- Rent, lease or mortgage payment for real property directly associated with the business such as a storefront, warehouse or manufacturing space
- Rent, lease or purchase payment for business capital such as kitchen equipment, a delivery vehicle, and technology
- Utility payments associated with the business property
- Costs associated with critical business operations such as marketing, purchase of materials, or labor costs associated with delivery service
Businesses that accept funds through the Emergency Business Loan Program will be required to provide documentation of each eligible expense, such as receipts reflecting the amount and dates of service.
How the Fund Works
Following successful application to the Emergency Business Loan Program, obtaining and repaying a loan shall occur as follows:
- Each loan will be accompanied by a secured promissory note
- $5,000 loans will:
- be subject to a balloon payment due on or before the one-year anniversary of the loan, and
- include an interest rate of Chase Prime Plus 1.
- $10,000 loans will:
- be subject to payment in annual installments of $5,000, at minimum, with a final payment due on or before the two-year anniversary of the loan, and
- include an interest rate of Chase Prime Plus 1.
- Interest will be waived on all loans that are paid within the required period of time
- A loan may be forgiven if:
- The business maintains the number of full-time jobs (or full-time equivalent) that existed prior to the COVID-19 pandemic emergency order issued by the City of Mineral Wells on March 19, 2020, throughout the duration of the loan period, and
- All other requirements of the program, including documentation of appropriate expenses and timely payment, are fully and timely met.
Applications and required additional materials may be sent to Peggy Clifton, City Clerk for the City of Mineral Wells by email at email@example.com, by mail to Post Office Box 460, Mineral Wells, TX 76068, or by personal delivery to 115 SW 1st Street, Mineral Wells, TX 76067. Incomplete applications will not be considered.
Each application should include:
- A correctly completed Mineral Wells Emergency Business Loan Program Application
- A completed W-9 form
- Proof of employment such as a W-3 Transmittal of Wage and Tax Statement, 941 form, or other document showing payroll expenses, employer expenses, employer insurance expenses, or employer retirement expenses for the first quarter prior to the COVID-19 emergency declaration by the City of Mineral Wells on March 19, 2020.
The application period for this program will be “first come, first served” based on eligibility and remain open until the earliest of the following:
- September 15, 2020,
- the amount funded at $150,000 has been exhausted, or
- the MWEDC determines that its program goals have been satisfied.
The MWEDC shall determine eligibility of all applications of the Emergency Business Loan Program through a committee consisting of Randy Criswell (City Manager), Dave Hawes (Interim Economic Development Director), and EDC board members Tracey Kirsch, Mike Allen, and Allen Clarke.
Questions or requests for clarification or assistance can be directed to Randy Criswell, City Manager of the City of Mineral Wells at 940.328.7700 or by email to firstname.lastname@example.org.