As Katy area businesses struggle to get by under orders to close down or limit services to slow the spread of COVID-19, the Katy Area Economic Development Council has partnered with a local bank to offer fixed-rate loans to businesses.

“The program is based on a national loan program model developed by the Galveston Economic Development Partnership,” Katy Area EDC President Lance LaCour said.

The program, which is currently offered through  Texas Dow Employees Credit Union, is providing short-term loans of up to 180 days with a fixed 3.25% annual percentage rate – also known as an APR, according to a Katy Area EDC press release. The rate will be offered through June 30 and is intended to provide gap financing for businesses awaiting insurance, Small Business Administration relief or other funding for long-term recovery.

Other banks are welcome to enroll in the program, LaCour said.

Those interested in the loan program should contact the lenders directly.

• TDECU

CORRECTION: Bank of Texas has not enrolled in this program at this time.