Donna hopes federal grant jumpstarts small business

DONNA — Government officials here hope a new, $114,200 grant from a federal rural development agency will spur small business investment in their city.

Donna Mayor David Simmons said the grant, announced last week, will establish a revolving loan fund to assist business owners who need help paying for infrastructure, landscaping, signs and parking lots.

“The key is we want them to employ people in our community,” Simmons said. “Of course, we want the businesses in town to pay into our taxes, but we would like our citizens to work.”

The mayor said some businesses have expressed interest and the city is already accepting applications.

City Manager Oscar Cuellar said conservative estimates suggested the fund could create close to 25 jobs, but he expects more once loans are issued around October.

This is the first year Donna applied for the grant, though the U.S. Department of Agriculture’s Rural Development agency has awarded grants such as these to cities like La Joya and San Juan, Cuellar said. Donna had requested $300,000 but will pad the $114,200 with about $45,000 from the city’s own coffers.

“These loans will go to flower shops, restaurants, beauty shops … no chains or national brands,” Cuellar said. “All the costs small businesses face pile onto a business and make it hard to stay successful.”

U.S. Rep. Rubén Hinojosa, D-Mercedes, played an integral part in securing the grant for Donna.

According to Salomon Torres, Hinojosa’s district director, the congressman rewrote population maximums that typically reserve the grant for rural, more agriculturally based communities.

Torres said Hinojosa also introduced the city to a funding system that would help it in the long run.

“It’s our intent to help them empower themselves,” Torres said. “Hopefully, they develop their own internal expertise to provide loans and business incentives to attract other funds.”

Simmons said the city has already done that.

“We never had anybody on staff to help us with these grants previously,” he said. “Now our group is very young and intelligent. We are stressing active reaching-out to get these types of funds.”

Cuellar said the city would re-apply for the grant the moment the first loans are issued.

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Neal Morton covers Mission and general assignments for The Monitor. He can be reached at (956)683-4472.