Operating a Small business in Texas, Government Assistance Programs

staff writer • June 7, 2024
small business austin texas

Texas Small Business Funding Programs


The state of Texas is committed to nurturing small business growth and development through a variety of funding programs designed to bolster its economic landscape. Key among these initiatives is the Texas Small Business Credit Initiative (TSBCI), which offers substantial resources to promote job creation and entrepreneurial endeavors.


Small Business Development Centers (SBDCs), in partnership with the U.S. Small Business Administration, play a pivotal role in supporting small business owners. They provide essential education, personalized consulting, and crucial support to help businesses navigate the competitive marketplace.

The Texas Economic Development and Tourism Office is integral in sustaining the vitality of the Texas economy. Through various programs and partnerships, they offer robust support to businesses aiming to thrive in Texas's dynamic market. The office prioritizes initiatives that address economic development opportunities across a wide range of industries and geographical areas within the state.


As part of the state’s implementation of the Small Business Credit Initiative, there is a significant focus on empowering traditionally marginalized business owners and those most impacted by economic disruptions, such as the COVID-19 pandemic. The initiative ensures that small businesses have enhanced access to the funding they need.


- Capital Access Program (CAP): This program assists Texas businesses in securing loans for expansion and operational costs.

- Loan Guarantee Program (LGP): This program provides loan guarantees to mitigate risk for lenders, thereby increasing the likelihood of funding approval for small businesses.


Read more on designrush


What if you don't want a Loan?? What if you want a nonrepayable note to assist your Small business in Texas ?

yes this is for you.


Businesses with 499 employees or fewer are encouraged to utilize these programs to seize growth opportunities within the Texas market.


The Texas Enterprise Zone Program (EZP) is a state initiative aimed at stimulating private investment and job creation in economically distressed regions of Texas through state sales and use tax refunds on qualified expenditures. To participate, companies must be nominated by Texas communities, which submit applications on their behalf. These companies are required to meet minimum capital investment thresholds and demonstrate job creation or retention, prioritizing employment for economically disadvantaged individuals, enterprise zone residents, or veterans.


EZP designations are effective starting 90 days before the application round deadline and last between 1 to 5 years from the date of designation. The refund structure varies based on the level of capital investment:


- For a “Half Enterprise Project” (investment of $40,000 to $5,000,000 or more), a maximum of 250 jobs can be allocated with a potential refund cap of $625,000, or $2,500 per job.


- For an “Enterprise Project” (investment of $5,000,000 to $149,999,999), up to 500 jobs are allocated, with a refund limit of $1,250,000, or $2,500 per job.


- For “Double Jumbo Projects” (investment of $150,000,000 to $249,999,999), a maximum of 500 jobs can be allocated, with a $2,500,000 refund limit, or $5,000 per job.


- “Triple Jumbo Projects” (investment of $250,000,000 or more) also cap at 500 jobs, with a maximum refund of $3,750,000, or $7,500 per job.

Notably, for Double and Triple Jumbo Projects, job retention cannot be counted for benefit.

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What are business grants and what is the Texas Enterprise fund ?


The Texas Enterprise Zone Program promotes job creation and private investment in economically distressed areas by allowing local communities to partner with the state for economic development.


Moreover, the Texas Enterprise Fund (TEF) serves as a significant mechanism to support large-scale economic projects in the state. Although primarily designed for substantial projects, the benefits trickle down to small businesses through indirect job creation and increased economic activity. In addition to the TEF, programs such as Events Trust Funds and the Texas Jobs, Energy, Technology & Innovation (JETI) initiative focus on large-scale projects but can yield downstream benefits for the broader economic landscape.


For small businesses, understanding and leveraging these programs can be crucial. Texas also offers targeted resources like the Governor’s University Research Initiative (GURI), which, although mainly aimed at higher education institutions, opens opportunities for partnerships in research and innovation.


Programs like the Texas Semiconductor Innovation Fund (TSIF) specifically support semiconductor-related businesses.

texas gov small business programs - news

Texas has always been synonymous with innovation and opportunity, and today, it's the best place in the nation for business. With 3.2 million small businesses and counting, the Lone Star State is a haven for dreamers and doers alike.



 Texas government assistance programs for small businesses


The landscape of the state's economy across various sectors. At its core, the objective is to foster growth, innovation, and sustainability among small enterprises by providing them with the necessary tools and resources to thrive. These programs encompass a range of financial aids such as grants, loans with favorable terms, and tax incentives aimed at reducing operational burdens while encouraging expansion and job creation.


Beyond financial assistance, Texas also offers a plethora of developmental resources including mentorship opportunities, training workshops, and technical support tailored to meet the unique needs of small business owners. These educational components are pivotal in equipping entrepreneurs with knowledge on market trends, business management strategies, and compliance with regulatory requirements.


A notable aspect of Texas' approach is its focus on inclusivity and accessibility. Special initiatives target minority-owned businesses, women entrepreneurs, veterans transitioning into the civilian workforce, and businesses operating in economically disadvantaged areas. This holistic strategy ensures that a wide array of businesses can benefit from state support regardless of their background or location within Texas.


Moreover, the state actively fosters partnerships between small businesses and local governments to ensure that economic development efforts are synchronized and impactful. Through these collaborative endeavors, Texas not only nurtures its entrepreneurial ecosystem but also solidifies its reputation as a fertile ground for business innovation and growth.
Governor Abbott is committed to making Texas the number one place for veterans, minority, and women-owned businesses. With a range of specialized resources, we ensure that every entrepreneur has the opportunity to succeed. Public procurement can offer significant opportunities. Our team works to help local businesses compete successfully in the government marketplace, providing valuable resources and guidance.


Explore these key resources and take your next big step today. Texas is ready to support your success. Let’s make your business dreams a reality.


- Small Business Benefits in Texas:

- Texas Small Business Credit Initiative (TSBCI):

- Supports programs for small business growth

- Increases access to funding

- Targets marginalized businesses and those impacted by COVID-19

- Expected allocation: over $472 million


- Skills Development Fund:

- Finances customized job training for local businesses

- Established in 1995

- Administered by the Texas Workforce Commission

- Forms partnerships with local community colleges and technical schools

- Average training cost: $2,000 per trainee (varies by proposal)


- Self-Sufficiency Fund:

- Provides job training for recipients of Temporary Assistance for Needy Families (TANF)

- Links businesses with educational institutions

- Administered by the Texas Workforce Commission

- Grants available for customized job training and support services

- Requires joint application from employer and eligible educational entity

- Opportunity Zones:

- Offers tax incentives for investments in economically distressed communities

- Aimed at revitalizing underserved areas

- Industrial Revenue Bonds:

- Provides affordable financing options for manufacturing facilities and other projects

- Helps lower overall borrowing costs for small businesses



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