Laredo Times

The Laredo City Council will seek a firm to inexpensively help small businesses apply for loans available through over $2 million in CARES Act funding.

The council voted 7-0 during a special City Council meeting held June 23 to either retain LiftFund, a company the city picked to develop and execute a small business revolving 0% loan program for local businesses, or to direct management to research a cheaper alternative for providing small businesses with a revolving 0% small loan program and contact the Laredo Economic Development Corp. as well as banks for a smaller collection percentage, the preliminary City Council minutes said.

LiftFund, if it remains the city’s choice, would receive approximately 10% of the over $2.23 million grant for a small business revolving 0% loan program, or approximately $220,000 for its work in developing and executing the program, the council minutes said. 

The council previously had authorized City Manager Robert Eads to enter in memorandums of understanding in order to distribute CARES Act funds to local entities. The funds will be used for reimbursement of workforce training expenses and small business assistance under the CARES plan approved by the Laredo City Council. These entities would provide small business assistance and workforce training to those impacted by COVID-19 in accordance with federal and state guidelines.

Other entities in addition to LiftFund that would benefit from the CARES Act funds are Laredo College with $700,000 and Workforce Solutions for South Texas with $200,000.

Among requirements for small business loans is that the businesses will have been in operation before 2019, have less than $1.5 million in general revenues, and demonstrate that revenue losses were caused by the coronavirus.