Texas Border Small Business Broadband Fund
Investing in enterprise in the Texas Border Region
There is enormous entrepreneurial spirit in the South Texas Border. But a lack of digital connectivity is a barrier to business. According to a 2019 study, closing the Texas rural digital divide would add an estimated $3.8 billion annually to GDP. By investing in the region’s digital development, we can help unlock this multi-billion dollar opportunity, powering local businesses and creating new, well-paying jobs. That’s why Connect Humanity and TeamPharr.Net are raising a $10 million Texas Border Small Business Broadband Fund, as part of the work of the Rio Grande Valley Broadband Coalition.
Broadband ready for business
The South Texas Border is one of four persistent poverty areas of the US, where 20% or more of residents have remained under the poverty line for at least three decades. It is also one of the least digitally connected.
Closing the digital divide and ensuring local businesses have the tools they need to thrive is a vital step to ending this cycle of poverty. Greater connectivity will help these small businesses, rural businesses, and micro-enterprises increase sales, find efficiencies, create jobs, and generate wealth in their communities.
“We have committed to taking on the digital divide in our communities because we know it is the most powerful way to unlock the many talents and potential our people have.”
– Dr. Ambrosio Hernandez, Mayor of the City of Pharr
To help accelerate digital development, the Texas Border Small Business Broadband Fund will address “three legs of the stool” of digitalization: 1) Infrastructure 2) Affordability and 3) Digital skills.
Infrastructure
Performance-based financing will incentivize local internet service providers to connect small businesses, community health clinics, and nonprofits to fast, reliable fiber internet.
Affordability
A 1-year $40/month subsidy will help cover the cost of broadband for eligible businesses. While a no-to-low-interest loan for hardware and software will help them digitize their operations.
Skills
Training will ensure business owners are able to use digital tools effectively to support their business. When this happens, businesses become long-term subscribers.
The project starts with a $2 million pilot to connect 50 businesses and organizations in Hidalgo County — one of the lowest-income and least connected counties in the US. We are now actively raising $10 million from a combination of philanthropic funds, government grants, and Community Reinvestment Act (CRA) investments to roll out the project across the Texas border region.
“We have the tools we need to transform the Texas Rio Grande Valley from one of this country’s least-connected regions into a digital leader. This means a stronger economy, higher paying jobs, and more entrepreneurial opportunities. The small business broadband fund offers banks a vehicle to invest in their communities under the CRA, while overturning decades of inequalities and equipping communities with the resources to prosper in a digital society.”
– Jordana Barton Garcia, Connect Humanity
Find out more
Interested to participate in the Texas Border Small Business Broadband fund? Let’s talk. Email jordana@connecthumanity.fund.