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Unlimited Possibilities

Loan Program



The Heart of Texas Economic Development District, Inc. (HOTEDD) is pleased

to announce the award of funds from USDA-Rural Development to make loans to

rural small businesses at  affordable rates.

Purpose—Our goal is to support  our local businesses so that they

can grow, create jobs, and diversify our regional economy.

Specifically, the HOTEDD RBEG RLF Program seeks to assist qualified

small and emerging businesses in the rural Heart of Texas including

Bosque, Falls, Freestone, Hill, Limestone and rural McLennan Counties.


Timing—Applications for RLF funds will be  accepted on a continual basis.  Applicants who choose to apply in times when inadequate funds exist for extending a loan will be informed of the lack of funds.


Eligibility Requirements

Any private business that will employ 50 or fewer new employees and has less than $1 million in projected gross revenues located in the rural (as defined by USDA) Heart of Texas region including Bosque, Falls, Freestone, Hill, Limestone and rural McLennan Counties (McLennan County communities that are not contiguous to the City of  Waco).  On a case by case basis, the Loan Committee may waive this requirement and provide loan funds to a business located outside the region if the committee determines doing so will have a positive economic impact on the community to be assisted with RLF funds.


The project will create or retain one full-time job per each $10,000.00 in loan funding.


At least 51 percent of the interest in the business (applicant) must be owned by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence certifiable by HOTEDD and USDA.


HOTEDD RLF’s financial assistance is necessary  to the viability of the project: There must be evidence presented by the applicant that demonstrates that the projects financial requirements cannot be met from owner resources or a commercial financial institution.


Heart of Texas Economic Development District, Inc. & Heart of Texas Council of Governments (HOTCOG) employees, board members or immediate family members are ineligible for funding.


All Equal Opportunity and Nondiscrimination Requirements must be met and recorded as required by the USDA.


Project Categories

Loans for startup operating cost and working capital; Machinery/equipment; Acquisition and development of land, easements, and rights-of-way; Construction, conversion, enlargement, repairs  or modernization of building(s) or plant(s), including facade repairs; Access streets and roads; Parking areas; Utilities; Pollution control and abatement facilities; Technical assistance for private business enterprises; Refinancing of construction financing may also be considered;


RLF loan funds will not be used to pay off any previous debt, except for refinancing construction financing;

RLF funds will not be used to produce agriculture products through growing, cultivation, and harvesting either directly or through horizontally integrated livestock operations except for commercial nurseries, timber operations, or limited agricultural production related to technical assistance projects.


Please contact HOTEDD, Inc. for an application:

HOTEDD, Inc. c/o  Heart of Texas Council of Governments

1514 S. New Road Waco, TX 76711 (254) 292-1874



Non-Discrimination Statement

 “This institution is an equal opportunity provider and employer.  If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gove/complaint filing cust.html, or at any USDA office, or call (866) 632-9992 to request the form.  You may also write a letter containing all of the information requested in the form.  Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director of Office of Adjudication, 1400 Independence Avenue, S.W. Washington, D.C. 20250-9410, by Fax (202) 690-7442 or email at”

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