The Urban County Program is requesting the County’s approval and payment of an origination of 1 % in order to renew an existing $500,000 Line of Credit with First National Bank of Edinburg for the Colonia Construction Grant.

The Line of Credit renewal was approved by Commissioner’s Court on July 20, 2010.  However, this year First National Bank has a new policy which includes an origination fee which amounts to $5,000.  The purpose of the Line of Credit is to help finance the cost of construction and general administration expenses prior to reimbursement from the Texas Department of Housing and Community Affairs and/or Texas Department of Rural Affairs.