Edcouch, Texas, USA

Refinancing of Existing Debt for the City of Edcouch, Texas

Status: Completed


Edcouch is an economically distressed community with an estimated poverty rate of 30.9% as of 2019. The largest employers are in the educational services, healthcare and social assistance, and retail trade sectors. The City is responsible for maintaining public infrastructure and services for its residents, including providing drinking water, wastewater and solid waste services. The negative economic effects of the COVID-19 pandemic have placed additional stress on the City, including increased costs related to the health and safety of its employees, food bank distribution, public Wi-Fi and telework.   

One of the measures proposed by the City to reduce its debt service obligations is refinancing its existing debt.


The project consists of refinancing up to US$1,425,000 in existing debt, including related interest and financial costs, for the City of Edcouch. The terms of the NADB Loan, specifically a lower interest rate, longer tenor and 10-year principal grace period, will significantly reduce annual debt service obligations for the City, freeing up cash flows for the maintenance and operation of public infrastructure and the ongoing provision of essential services, including water and wastewater services.


The refinancing is expected to reduce debt service obligations by roughly US$104,590 during the first year—which represents 64% of the cost of water and wastewater supplies in the City’s 2021 fiscal year budget. The cumulative present value of the reduced debt service obligations over the first ten years of the loan is approximately US$820,000. These cash flows will directly benefit residents by increasing the City’s financial capacity to maintain existing infrastructure and essential services without placing an additional property tax burden on residents.

Project Financing

Total Project Cost US 1.41M
NADBank Funding