$1.5 Million in Grant Money for 2nd Round of Funding for McAllen Small Businesses

The City of McAllen and the McAllen Chamber of Commerce are now offering an additional $1.5 million in its COVID-19 Small Business Grant program to help McAllen small businesses relaunch and reignite their businesses. Grants up to $5,000 will be given to small businesses with revenues of less than $2 million.

Mayor Jim Darling said, “Small businesses are the foundation of McAllen’s economy. The City of McAllen wanted to do everything it could do to have a positive impact on local small businesses during this pandemic recovery.” 

The program will be available to McAllen-based businesses, for as long as the funds are available. The grants are free money and do not have to be repaid. 

The money can be used for the following:

  • Launching online presence and sales
  • Personal Protective Equipment (PPE) and sanitation supplies and equipment
  • Short-term marketing campaign
  • Limited interior modification for health and safety purposes
  • Delayed rent/mortgage payment on business property lease/loan
  • Delayed utility payment for business property

The program is a “third party” pay system, which means the proceeds from the grant will be paid directly to a vendor or supplier for the services or products needed. Businesses that received the Small Business Administration (SBA) Payroll Protection Program loan (PPP loan) are eligible. 

Several key documents must be provided to be eligible for the award, and they include:

  • Secretary of State of Texas file number 
  • State of Texas Tax ID number 
  • Doing Business As (DBA) documentation 
  • Employer Identification or Social Security Number (if Sole Proprietorship)
  • 2018 or 2019 tax return that has been filed depending on the structure of the business (Form 1065 for Partnership, Form 1120-S for an S-Corporation, Form 1120 for a C-Corporation, Form Schedule C for a Sole Proprietor/Single Member, LLC) 
  • A signed statement that the grant request is necessary due to the conditions of COVID-19 
  • An agreement to an audit by the City of McAllen of the use of grant funds received 
  • An agreement to a claw-back provision if funds are used for ineligible purposes

Funds may not be used for property acquisition, food, drink, travel, conferences, trade­shows, or other costs not directly related to assisting businesses in reopening and succeed­ing during this pandemic. Key information about the McAllen COVID-19 Small Business Grant program can be found at the Chamber’s website: www.mcallenchamber.com 

Better, Stronger, Together.