The Borger Economic Development Corporation provides these financial incentives to industries within the community and the state and to businesses nationwide seeking expansion to this outstanding community. All incentive offers are evaluated on their own merits and are subject to approval by the Borger Economic Development Board of Directors and, in certain instances, the Borger City Council. Approval is contingent upon the feasibility of the project, capital investment, job creation, feasibility of the project and overall benefit to the community.
This program is targeted toward existing businesses for financial, land, buildings, and equipment. On a case-by-case basis the Borger EDC will consider loans to companies that are expanding their employee base or locating to Borger. The company must be a “basic income” type company. A basic income company is a company that is located in Borger or Hutchinson County but 75% of their sales and/or income will come from out side of Borger and Hutchinson County.
Types of Businesses Eligible for Grants or Loans
- Regional Wholesaling
- Service (relating to manufacturing, industrial, distribution and wholesaling)
- Technology Firms
- We cannot use local sales tax revenues to provide incentives to a company that will compete directly with a company that is already in Borger
Types of Loans
Site Development Funds
These monies can be used by businesses expanding to Borger to purchase or develop industrial sites.
Major Projects Fund
This fund may be accessed by enterprises requiring more than $500,000. Leases and loans may require the issuance of bonds or certificates of obligation.
Types of Projects Eligible for Funds
- Acquisition or construction of business facilities for lease or ownership.
- Improvements to facilities that are leased to companies.
- Loans to companies for equipment purchases.
- Purchase of equipment for lease to companies.
- Loans to companies for purchase of land.
- Grants to companies for technology development
- Extension of utilities, roads, and rail service to industrial parks, sites, and buildings.
Because of certain statutory regulations, there are three types of projects the Borger EDC is UNABLE to fund: Commercial projects (except in blighted or development areas), retail projects, and professional services. One other exclusion is a project which has the primary purpose of furnishing facilities to the general public.
Job Creation Incentives
The Borger Economic Development gives up to $3,000 in loan credit for each job created. This incentive is effective one year after the initial “start-up date.” The Borger EDC provides a customized job-training program called “Smart Jobs.”
Rules and Regulations
- The Borger EDC may require at least one other provider of capital.
- The Borger EDC may require full coverage for all loans made. Loan to value ratio requirements should not exceed 80% of the appraised value of the collateral.
- On corporate loans, the Borger EDC requires a personal guarantee from principals of the corporation. As well, principals may need to provide life insurance in the amount sufficient to cover the outstanding loan balance of any loan.
- Environmental impact assessments are required for loans on existing buildings or on land.
Loan Application Process
We will be happy to assist you in preparing your loan application package. Here are the items you will need:
- A completed application form.
- Business financial statements for the past three years including current statements no older then three months
- Personal financial statements for each principal involved in the company.
- Copies of the last three year’s income tax returns.
- Cash flow and income statement projections for two years
- Projected year-end results for the current year.
- Breakdown of how requested funds are to be used.
- A denial from a commercial lender rejecting the loan.
For information regarding relocation of manufacturing or distribution facilities to Borger, contact:
Borger Economic Development Corporation
Dan Redd, Executive Director
P.O. Box 1157
300 W. 6th Street
Borger, TX 79008-1157
Phone: (806) 677-1704
Fax: (806) 667-1705
Home page: www.borgeredc.com