Learn About Business Incentives and Assistance

Learn About Business Incentives and Assistance

There are many programs with a mission to support and grow businesses in Texas. Whether they have been designed to help secure financing, provide trainings, invest in infrastructure and recruiting efforts and many other endeavors, these incentives and assistance programs can be a great resource for you.

Financing and Financial Incentives

The Small Business Administration (SBA) provides financial assistance to small business owners through approved partnering lenders. Through their programs, they help small businesses obtain loans by decreasing risks for lenders.

  • The 7(a) Loan Guaranty Program has broad eligibility requirements, credit criteria, loan structures, loan proceeds usages and availability. The maximum loan amount is $5 million, and there are several different kinds of 7(a) loans, each with their own terms and conditions.
  • The SBA 504 Loan Program provides long-term, fixed-rate, subordinate mortgage financing for acquisition and/or renovation of capital assets including land, buildings, furniture and equipment. Loans range from $300,000 to $10 million.
  • The Microloan Program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers get started and expand.
  • The Surety Bond Guarantee Program is a public-private partnership between the federal government and the surety industry providing small businesses with the bonding assistance necessary for them to compete for public and private contracting opportunities. SBA guarantees bid, payment, and performance bonds issues by surety companies for individual contracts on behalf of eligible small construction, service, and supply contractors.

The Office of the Governor, Economic Development and Tourism Division is the administrator of Texas’ financial assistance programs. It supports small business financing opportunities through the following financing programs:

  • The Product Development Fund and Small Business Incubator Fund is a revolving loan program that provides financing to assist in the development, production, and commercialization of new or improved products and stimulate the development of small businesses in the state.
  • The Texas Leverage Fund provides a source of funding for communities that have adopted an economic development sales tax. Communities can take advantage of tax revenues from future sales to increase economic development through business expansion, business recruitment and export. Loan amounts range from $25,000 to $5 million.
  • The State of Texas Industrial Revenue Bond Program (IRB) is designed to provide tax-exempt, or taxable financing, for eligible industrial or manufacturing projects. The bond debt service is traditionally paid by the business operating the facility.
  • The Capital Access Program focuses on financing for businesses and nonprofit organizations that face barriers in accessing capital or fall outside the guidelines of conventional lending. The Capital Access Program participating lenders are LiftFund in San Antonio and PeopleFund in Austin.
  • The Governor’s Office of Small Business Assistance (GOSBA) offers Governor’s Small Business Service Provider Grants (up to $10,000) to enhance and diversify projects and activities which benefit small businesses and Historically Underutilized Businesses (HUBs).
  • The Texas Produce/Business Fund provides asset-backed financing to companies doing business in Texas. Financing takes the form of direct asset-based loans with competitive loan rates.
  • The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

Several nonprofits also offer financial assistance:

  • LiftFund serves small businesses that do not have access to traditional commercial loans. They provide business loans from $500 up to $1 million. LiftFund is also an approved SBA lender, administering both the SBA 7(a) loan program and the SBA 504 loan program.
  • BCL of Texas promotes business and community development and provides business capital and commercial real estate loans across the state. In addition to providing businesses with counseling and technical assistance, BCL of Texas originates, underwrites, processes, closes and services business loans for healthy, growing businesses.
  • BiGAUSTIN is a nonprofit dedicated to providing comprehensive training services, one-on-one assistance and loans to those who want to start their own small business. Startups with as little as three months of operation are eligible for loans up to $15,000. BiGAUSTIN also houses the Central Texas SBA Women’s Business Center.
  • PeopleFund is a non-profit 501(c)(3) that provides loans and financial and technical assistance to people who are left out of the financial mainstream. They manage small business and nonprofit loans, business consulting and technical assistance as well as a variety of other programs.
Workforce and Job Training

Through the TWC Skills for Small Business Program, small businesses (less than 100 employees) have an opportunity to train new workers or upgrade the skills of incumbent workers. Small businesses can apply to TWC for training offered by their local community, technical college or the Texas A&M Engineering Extension Service (TEEX).

Also administered by TWC, the Self-Sufficiency Fund is a job-training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF). The program links the business community with local educational institutions with the goal of helping TANF recipients achieve financial independence. The fund makes grants available to eligible organizations to provide customized job training and training support services for specific employers.

Tax Incentives

You can find a complete list of federal, state, county and city tax incentives here.

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