LUFKIN, TX (KTRE) - The meat processing company was presented with a $338,000 forgivable loan on Thursday at the Pister Garrison Convention Center in Lufkin.
"With their help, we have already generated 21 new jobs, and we're trying to be a part of this great community, so thank you so much to DETCOG and their support and really belief in our business," said Holmes Smokehouse President, Rodney Roth.
If Holmes Smokehouse maintains the jobs for 24 months, the loan will be forgiven and become a grant.
The loan program is designed to assist for-profit businesses to grow by creating jobs for low- to moderate-income individuals. The loan money comes from Round 2.2 of the Hurricane Ike Recovery HUD Community Development Block Grant being administered at the state level by the Texas General Land Office.
"For-profit businesses can use this money in ways to either retain or create jobs for low to moderate income individuals," said DETCOG Executive Director, Walter Diggles. "The $5 million is divided among the DETCOG counties based on the Method of Distribution (MOD) we developed earlier. That MOD divided the available funds among the twelve counties based on four factors: FEMA Reported Damages, Population, Unemployment and Poverty," Diggles said.
"Every county in the DETCOG region lost jobs because of Hurricane Ike," said Mark Allen, the Jasper County judge and the president of DETCOG. "The amount loaned in this program is based on the number of low- to moderate-income jobs that will be created or retained. Half of the amount of the loan is forgiven after a year if the jobs are still in existence. The remaining amount of the loan will be forgiven after the second year the jobs are still there. If the jobs are not created and maintained, the amount of money outstanding, with interest, will have to be paid back."
The deadline for applying for Deep East Texas Council of Governments' (DETCOG) Hurricane Ike Disaster Recovery Forgivable Loan is July 15, 2013, less than a month away.