EDINBURG, Texas – The City of Edinburg and Edinburg Economic Development Corporation are partnering with LiftFund to launch what they are calling the Interest Buy Down Program.
City and EDC leaders say it is a “groundbreaking initiative” that aims to tackle two major hurdles faced by small business owners in Edinburg – the availability of capital and maintaining healthy cash flow.
Edinburg Mayor Ramiro Garza said IBDP offers small business owners an opportunity to secure reduced interest rate loans at just 2.5 percent. He said the program will thus foster growth and prosperity within the local business community.
“This collaboration with LiftFund demonstrates our unwavering commitment to supporting small businesses in Edinburg,” Garza said. “The Interest Buy Down Program will empower entrepreneurs by providing them with access to affordable loans, enabling them to overcome financial obstacles and thrive in our vibrant local economy. We encourage all eligible businesses to take advantage of this incredible opportunity.”
Marlene Rodriguez, LiftFund’s market director, said the partnership between LiftFund and the EEDC will “revolutionize access” to financing for small businesses in Edinburg.
Through the Interest Buy Down Program, she said, entrepreneurs can benefit from loans at an “exceptionally low” interest rate of 2.5%, addressing the challenges of capital acquisition and cash flow management.
By providing affordable financing options, Rodriguez said, the IBDP is designed to foster entrepreneurship, promote innovation, and bolster the economic landscape of Edinburg.
“We are honored to partner with the City of Edinburg and the Edinburg Economic Development Corporation to provide business owners the opportunity to access affordable funding while maintaining a steady cash flow,” Rodriguez said.
“Through this partnership, we are thrilled to offer a special 2.5% interest rate on small business loans to strengthen the Edinburg small business community.”
Under the collaboration, Edinburg EDC has committed $100,000 to LiftFund to “buy down” the interest rate on small business loans. This injection of funds allows LiftFund to offer loans of up to $50,000 at a 2.5 percent interest rate to a minimum of 12 businesses, with the number varying based on the loan size. In addition to favorable loan terms, each participating business will receive two hours of dedicated business support from LiftFund.
By leveraging the initial $100,000 investment, the partnership is projected to provide up to $600,000 in loans, bolstering the local business ecosystem and driving economic growth within Edinburg. The Interest Buy Down Program is set to run until March 2024, offering small business owners an extended opportunity to apply and benefit from this unique financing initiative.
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