Small Business Incentive Programs and Grants in Texas
When you start a new business in Texas, one of the beneficial aspects is that you will have access to a variety of Texas small business grants and incentive programs. Every business has an initial cost attached to their inception and this cost varies according to the type of business activity and setup. Some businesses like those started from home have lower initial costs but some businesses like retail stores or restaurants have higher initial startup costs. In order to manage costs, entrepreneurs can apply for loans through Texas small business funding programs and even participate in incentive programs that provide a variety of tax credits and other benefits to offset long-term operational costs.
Incentive programs are governed or administered by state agencies and the Federal government. Each state in the US offers different types of state incentives to help small businesses in achieving different objectives. For example, the Texas small business grants provide financial relief or funding to startups. Similarly, there are a host of incentive programs that are targeted at encouraging higher productivity and increasing employee retention rates among others. You can qualify for these incentive programs when you start doing business in Texas. Some of the top incentive programs in the state are:
Texas Enterprise Fund
The Texas Enterprise Fund (TEF) is a type of business incentive fund that awards Texas small business grants to business entities that are planning a new project like opening a new facility or expansion. Cash grants for each applicant are calculated based on a uniform analytical model. The analytical model takes into account several factors like:
- Average wage of all new employees
- Expected timeline of hiring
- Number of jobs being created
- Capital investment by the business
- The business sector in which the company is active
The Texas small business funding or cash award through the Texas Enterprise Fund (TEF) can vary from $250,000 to $50,000,000 and even more.
Events Trust Fund
The Event Trust Funds (ETF) program is a Texas small business incentives program, which comprises of three different funds, which are:
- The Events Trust Fund
- Major Events Reimbursement Program
- Motor Sports Racing Trust Fund
The primary objective of the ETF program is to attract a variety of events in Texas. The program is governed by the Texas Administrative Code, Title 10, Part 5, and Chapter 184.1 – 184.51. The amount of Texas small business funding through this program according to the funding database shows that it can vary from as low as $9,891 to $30, 61,727.08 and even more.
Texas Enterprise Zone Program
One of the top Texas small business incentives programs is the Enterprise Zone Program (EZP). This program is a type of sales and use tax refund program that has been specifically designed for encouraging private investment as well as job creation in some of the most economically distressed areas within the state. The refund is administered by the office of the Texas Comptroller and to qualify for this refund, your company should be situated within the Enterprise Zones. You can check the Enterprise Zone Map to identify the distressed counties or zones. As a part of the program, if you are doing business in Texas in the enterprise zone then it is important to know that the maximum allowable refund varies on the basis of capital investment and maximum number of jobs allocated.
For Example:: Your Company located in the Texas enterprise zone starts a “Half Enterprise Project” with capital investment varying from $40,000 to $5,000,000 and the maximum number of jobs allocated is 250. The maximum potential refund through this Texas small business incentives program will be $625,000 and the refund per job allocated would be $2,500.
Product Development and Small Business Incubator Fund
The Product Development and Small Business Incubator Fund (PDSBI) is a type of Texas small business grants program with the objective of providing asset-backed loans to small business incubators or accelerators and product development companies based in the state. The program consists of two separate funding programs, which are:
- Product Development
- Small Business Incubator
This type of Texas small business funding specializes in providing financial assistance for development and production of new as well as improved products. In order to be eligible for this program, a business should have a minimum of 3 years of operating history.
Skills Development Fund
The Skills Development Fund is an innovative Texas small business incentives program that has been created to assist the technical colleges and Texas public community to finance tailored job training courses for local businesses. This business incentive program is administered by the Texas Workforce Commission and the grant is provided to startups and companies. The maximum fund made available is $10 million and this Texas small business funding will allow businesses to address the training requirements of their existing and new workforce.
Are you planning to start a New Business in Texas?