$5,000 grants

Application Date

Applications open June 1st until July 30th


Open to small businesses within McAllen city limits

The McAllen COVID-19 Fund has a total of $1,500,000 dollars to assist small businesses located within City of McAllen limits.

The fund has two programs: The first part of the COVID-19 Fund is the Small Business Grant, which will have $1,500,000 in funds that will be awarded in $5,000 grants.

The City of McAllen and the McAllen Chamber of Commerce are offering a program to help reignite our local economy. The McAllen COVID-19 Small Business Grant aims to assist impacted businesses within the City of McAllen. The Grant awards up to $5,000 to applicants who qualify. The McAllen COVID-19 Small Business Grant will be distributed via third-party pay, meaning that the funds will be paid directly to the applicant’s supplier of the products or services.

The McAllen COVID-19 Small Business Grant has $1,500,000 to assist local businesses during the challenging economic conditions caused by the COVID-19 healthcare emergency. This program is designed to help fund businesses or programs that creatively address a need to create, enhance, restore, or protect their McAllen-based small business. Keep an eye out for a zero percent loan program to be announced by the City soon.  Website:

McAllen COVID-19 Small Business Grant Fund $5,000

The products and services that qualify for use are:

  • Launching online presence and sales
  • PPE and sanitation supplies and equipment
  • Replenishing inventory
  • Short-term marketing campaign
  • Limited interior modification for health and safety purposes
  • Delayed rent/mortgage payment for business property
  • Delayed utility payment for business property

The ineligible businesses:   

  • Franchisors / Franchises
  • Real Estate developers/investors
  • Governmental/taxing agencies/departments
  • Hobby businesses as defined by federal law
  • Multi-level marketing concern
  • Gambling Concerns, including casinos, racing operations, or other activities that involve a gambling purpose
  • Lobbying organizations and political organizations subject to Internal Revenue Code 527
  • Sexually Oriented Businesses (live performances, product sales, items, or materials)
  • Businesses primarily engaged in lending, investments, or to an otherwise eligible business engaged in financing or factoring.
  • Pawn Shops
  • An individual who employs household employees such as nannies or housekeepers
  • A business where a 20% or more equity owner is incarcerated, on probation, on parole; presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of a felony within the last five years
  • Concerns engaged in illegal activities under federal, state, or local laws
  • A business that is otherwise prohibited by federal or Texas law
  • A business that is ineligible or precluded to receive federal or State of Texas funding due to federal laws (including but not limited to the CARES Act) or Texas laws
  • Home-based businesses
  • Non-profit organizations

Documents required:

  • Texas Secretary of State file number
  • State of Texas Driver’s License 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, 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, and Business was declared non-essential
  • 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

Schedules and Deadlines:

Applications will be accepted between June 1, 2020, and June 30, 2020. The forms must be received electronically by June 30, 2020, and applications will be reviewed on a first-come, first-served basis, providing they comply with the guidelines. Depending on the program’s demand, funds may be exhausted before the grant deadline, in which case the program will be closed ahead of the scheduled end date. The grant awards will be directly announced to each qualifying business during the period of June 1, 2020, and June 30, 2020. DEADLINE EXTENDED TO July 30, 2020.

 Geographic Area:

All applicants and projects sponsored by the McAllen COVID-19 Small Business Grant must be located within the City of McAllen jurisdiction.

Grant Amount:

McAllen COVID-19 Small Business Grant program is offering $5,000 grants. The amount of the grant will be based on the project’s needs and the significance of its benefit. We desire to make a positive impact on a project or business with this grant assistance rather than be a small increment of a larger project. Funds may not be used for property acquisition, food, drinks, travel reimbursement, or other costs not directly related to helping businesses succeed during these challenging times. Grant is capped at $1 million dollars gross receipts (FIRST ROUND.) UPDATE: City of McAllen increased the cap of $1 million dollars in gross receipts to $2 million dollars.

Eligible Entities and Projects

To foster the goals of the McAllen COVID-19 Small Business Grant, the applicant and project must meet the following criteria to be eligible for this program:

Eligible Applicants

To be eligible for the McAllen COVID-19 Small Business Grant Fund, applicant businesses must comply with the following:

  • Small businesses based within McAllen, Texas city limits.
  • Businesses that have gross receipts of less than $2,000,000 are eligible for a $5,000 grant
  • Must be active businesses that were established at least 12 months before March 1, 2020
  • Businesses with more than one physical location can apply for the grant program for one location only.
  • Business owners with multiple businesses can only apply for one.
  • The business must have experienced a loss of revenue due to Public Health Orders enacted for COVID-19.
  • Verified physical location within city limits, but residential locations are excluded (attach picture of business).
  • A criminal background check for primary applicant. 

Applicant Commitments

  • Telephone interview: Applicants may be requested to provide a telephone interview during the selection process.
  • The McAllen Chamber of Commerce will review the Grant Applications and make decisions on the approval or denial of each application.
  • A letter of award will be sent to successful Grant recipients. Recipients must sign a copy of the letter agreeing to the terms and conditions of the guidelines stipulated herein. The signed letter must be returned within one week of receipt by the grant recipients. Failure to return the signed letter within this week will result in the loss of the award and selection of an alternative recipient.

A brief presentation may be requested: The company awarded the grant may be asked to make a brief presentation of the completed project at a later McAllen Chamber of Commerce event.

McAllen COVID-19 Small Business Grant reserves the right to withhold any or the entire grant award if a significant change in the project scope is implemented without prior McAllen COVID-19 Small Business Grant approval. The decision to withhold grant monies will be at the sole discretion of the McAllen COVID-19 Small Business Grant.

Declaration of Truth of Application

You agree and declare the following conditions in the case of grant approval:

  • Contents of Registration and Duty of Application: The applicants agree that the application is accurate and true. Also, the applicants must understand and obey the application guideline of the McAllen COVID-19 Small Business Grant.
  • Duties after the grant is approved: The granted applicants understand and must follow the guidelines.
  • Termination: McAllen COVID-19 Small Business Grant keeps the right to stop and/or cancel the grant and to require the refund of the paid grant in case of any of the following situations.  Reasons for Termination:
  1. a) False application
  2. b) Expenditure for the ineligible purpose
  3. c) Project revision without prior notice
  4. d) Surplus after the proposed period
  5. e) No completion after the proposed period
  • Personal Data Handling Policy: The applicants agree that McAllen COVID-19 Small Business Grant can share your necessary personal information given through this application process, such as name, address, and so on, with the grant selection committee, relevant government authorities, or other relative organizations.
  • After grant approval, applicants agree that McAllen COVID-19 Small Business Grant may announce the project information, including the grantee's information, such as name, address, and purpose of the grant.

Disclaimer regarding cooperation and collaboration: Neither the McAllen COVID-19 Small Business Grant Committee, City of McAllen, or the McAllen Chamber of Commerce shall be involved in or be liable for the implementation status of each business which cooperated or collaborated for the sake of applying for the program. Also, the McAllen COVID-19 Small Business Grant Committee, City of McAllen, or the McAllen Chamber of Commerce shall not be involved in or be liable to any disputes, controversies, or differences which may arise between the cooperated or collaborated parties, out of or in relation to the project implementation regardless of its contents or cause.

2nd Round of Funding Approved - Only $5,000 grants available. Increased Cap of Allowed Gross Receipts from $1,000,000 to $2,000,000

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