Cameron County tables notice to terminate Brownsville Local Development Company contract after small-business appeals

Cameron County Commissioners Court on Wednesday tabled consideration of a notice of termination for its contract with the Brownsville Local Development Company, the nonprofit certified development company that administers SBA 504 loans locally, after several small-business owners urged the court to preserve the program.

The court voted to table agenda item 2Z, which would have given notice of termination of contract number 2021C10351 with the BLDC, on a motion by Commissioner Joey Lopez seconded by Commissioner Sophia Benavides. The same vote pattern later tabled a separate agenda item (2AA) to dissolve the BLDC program manager position (PCN 419140001), also on a motion by Lopez and seconded by Benavides.

The decision followed public comments from several local business owners and community members who described the SBA 504 program as supportive of local investment and jobs. "Since October of 2021 the SBA 504 program has been a game changer for Cameron County," Hector Picasso identified himself as a BLDC board member and said. "Over the past 39 months this program has driven over $11,000,000 in capital investment into our local community. The investment has led to over 115 jobs that have been created and retained," Picasso said.

Zelda Aguilar, who described herself as a small-business owner, said the program helped her secure financing and keep employees during the pandemic. "Small Business Administration has made a big change," Aguilar told the court. Abigail Elizondo, owner of Elizondo Insurance Services, said the SBA 504 program allowed her to buy a commercial building with 10% down and lower interest, and urged continued county support. "This program is what's making it possible for us to build, to expand, and to secure our future right here in Cameron County," Elizondo said. Juliana Sosa, a local attorney and small-business owner, described direct assistance she received from the BLDC director while closing on commercial property.

County economic development director Ramiro Delaman told the court the BLDC is a certified development company (CDC), one of 17 in Texas that can serve clients statewide. Delaman said the county's contribution since 2021 totals just over $420,000 and that the BLDC has closed five SBA 504 loans since 2021. He said the BLDC projected $300,000 in revenue by 2024 but in practice the program collected about $37,500 in annual revenue; the county's personnel costs for the program over recent years were described in discussion as roughly $400,000 total over multiple years, with annualized costs that participants characterized during the meeting as roughly $60,000 per year (county and staff speakers used different estimates).

Commissioners asked Delaman for additional detail on the loans, including tax revenue generated, payroll associated with financed projects and the value and status of pending loan applications. Delaman said there were "about 8 to 10" pending applications but cautioned that approvals and funding can lag and that other CDCs in the state can service loans for Cameron County businesses. He also said the BLDC is a private nonprofit that can continue operating independently of county funding.

County discussion focused on whether continued county funding of personnel costs is justified by the BLDC's revenue and loan activity. Commissioner comments noted the county's intent to support small businesses but also the need to be prudent with public funds when projected revenues did not materialize. Following questions, Commissioner Lopez moved to table item 2Z; Commissioner Benavides seconded and the motion carried. The subsequent item to dissolve the BLDC position (2AA) was likewise tabled.

The court did not take final action to terminate the contract or dissolve the position at the meeting; commissioners said staff should provide more detailed financials on loan-level activity, tax revenue and payroll effects before any final decision.

Votes at a glance: Motion to table notice of termination (agenda item 2Z) ' Motion by Commissioner Joey Lopez; seconded by Commissioner Sophia Benavides; outcome: tabled (unanimous). Motion to table dissolution of BLDC program manager position (agenda item 2AA) ' Motion by Commissioner Joey Lopez; seconded by Commissioner Sophia Benavides; outcome: tabled (unanimous).

Next steps: County staff requested time to provide loan-level summaries, revenue and tax impact estimates, and the court left the items pending for a future meeting.