Granting a reprieve

Harris County forgives hundreds of small business loans for struggling locals

Over 400 small businesses in the Houston area have been granted forgiveness for loans. Photo via Getty Images

The global pandemic has wreaked havoc on local small businesses; many have struggled without savings, credit, and capital to continue on during the downturn. For some immediate relief, Harris County and the Houston-Galveston Area Council (HGAC) offered some 444 area small businesses interest-free loans of up to $25,000 earlier this year.

The loans would be forgiven in five years, per the initial Harris County COVID-19 Forgivable Loan Program agreement.

Now, in some feel-good, holiday news, the loans have been converted into grants, thanks to federal CARES Act funding received by the county, according to a statement by Harris County and Houston-Galveston Area Council.

"Many of the owners have already made use of the funds they received. Knowing that they don't have to pay it back, that it's all theirs, gives them one less thing to worry about at a time when so many have been impacted," said Omar Fortune, manager of the Houston-Galveston Area Local Development Corporation (H-GALDC), in a statement. (The organization handled the underwriting process and distribution of loans to small businesses.)

"We're pleased to be able to provide this gift to these small businesses that are so important to our region. That it's happening during the holiday season makes it even more special."

Originally launched on April 9, the Harris County COVID-19 Forgivable Loan program distributed $10 million to the 444 small businesses by the summer. On October 6, Harris County approved the loan conversion to grants, according to a press release. Small businesses that had already begun paying back their loans have had their payments reimbursed by the county, according to HGAC.

Local business owners are "ecstatic" upon hearing the news, according to H-GAC. " This whole experience has been an emotional roller coaster, but I'm extremely positive about the future," said Museum District-area dentist, Dr. Randy Mitchmore, in a statement.

"I'm proud to own a small business, and we have a direct impact on the local community. I'm also grateful for this program and that it was able to help small businesses as intended."

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This article originally ran on CultureMap.

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Building Houston

 
 

The SBA announced plans to open 20 new centers to serve female entrepreneurs — and one is coming to the Houston area. Photo via Getty Images

The Houston area is benefitting from national funding that will be dedicated to creating female-focused resource centers across the country.

The United States Small Business Administration announced grant funding to launch 20 new Women's Business Centers (WBC) across the country. The centers, which are slated to go into rural and underserved markets, will also be partnering with Historically Black Colleges and Universities.

With the funds from the grant and through a partnership with the Greater Houston Women's Chamber of Commerce, the new center will rise in Northeast Houston to serve the Montgomery, East Harris and Chambers' Counties.

"We are incredibly excited that an organization as prominent as the Greater Houston Women's Chamber of Commerce is joining the SBA team," says Tim Jeffcoat, director if the SBA in Houston. "We are looking forward to working with them to empower women-owned businesses in Houston to reach new heights of success."

These new efforts represent the largest expansion of the WBC program in its 30-year existence.

"We are thrilled to partner with the SBA in opening another Women's Business Center, providing resources and tools for our region's women-led organizations to launch and expand," says Suzan Deison, CEO, president and founder of the Greater Houston Women's Chamber of Commerce. "We are honored the SBA chose to partner with us to expand needed services in Montgomery, East Harris & Chambers' counties, especially during these challenging times."

The SBA has 136 centers open across the country, and each offers business counseling, training, networking, workshops, and more to area female entrepreneurs.

"Opening the doors to the new Women's Business Centers is crucial to the vitality of women-owned small business owners. This network expansion will provide female entrepreneurs with the resources they need to start, grow, and expand their businesses," says Associate Administrator for the Office of Entrepreneurial Development Allen Gutierrez. "We look forward to the continued success of the WBC program as it contributes to the overall health of our economy and creates jobs in their local communities."

According to the release, the timing of these new centers is especially important as entrepreneurs continue to be challenged amid the COVID-19 pandemic.

"Over the past several months, we have seen Women's Business Centers provide aid to our nation's innovative and determined entrepreneurs, allowing countless small business owners to pivot with confidence to stay afloat during the pandemic," says SBA Administrator Jovita Carranza. "Expanding the WBC program is part of this Administration's longstanding commitment to the success of female entrepreneurs and women-owned small businesses. Adding these new Women's Business Centers to the already existing network of centers across America will boost timely resources to our nation's female economic drivers, providing them with local training and counseling."

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