Texas is well known for being a business-friendly state. Boasting incentives, a vibrant and growing workforce, and tax breaks, the Lone Star State is a great place to launch your next venture. And, there are some great Texas-specific loans and grants available to entrepreneurs just like you. Take a look at these funding options for Texas businesses.
Department or Agency: Texas Department of Economic Development
Loan or Grant title: Texas Enterprise Fund
The Texas Enterprise Fund grants money to help companies considering a Texas site from other non-Texas site options. The program is a performance-based incentive for companies with projects that would drive large capital investment and job creation in Texas. Awards vary and are calculated based on an analytical model that weighs many factors including the number of jobs created, the time frame until hiring, and average wages paid to prospective workers. Applicants must commit to creating over 75 full-time jobs in urban areas or over 25 full-time jobs in rural areas. See the website for the application and full details.
Department or Agency: Texas Department of Economic Development
Loan or Grant title: Product Development and Small Business Incubator Fund
The Product Development and Small Business Incubator Fund provides loans to Texas companies engaged in product development or small business incubators/accelerators. The program is designed to help businesses that may be unable to qualify for funding from banks or other investment markets, though applicants must have at least three years in business to apply. Texas small businesses with over 51% of their employees in the state, and fewer than 100 employees in total, are eligible to apply to the Small Business Incubator Fund, provided they are likely to develop or expand opportunities for other small businesses in the state. The Product Development Fund is open to Texas companies working on new or improved products, including inventions, techniques, processes, and devices to be brought to market in Texas. Loan amounts vary from $1,000,000 to $5,000,000 and feature low variable interest rates, though they do require a 1-to-1 match. See the program overview for full details.
The Product Development and Small Business Incubator Fund provides loans to Texas companies engaged in product development or small business incubators/accelerators. The program is designed to help businesses that may be unable to qualify for funding from banks or other investment markets, though applicants must have at least three years in business to apply. Texas small businesses with over 51% of their employees in the state, and fewer than 100 employees in total, are eligible to apply to the Small Business Incubator Fund, provided they are likely to develop or expand opportunities for other small businesses in the state. The Product Development Fund is open to Texas companies working on new or improved products, including inventions, techniques, processes, and devices to be brought to market in Texas. Loan amounts vary from $1,000,000 to $5,000,000 and feature low variable interest rates, though they do require a 1-to-1 match. See the program overview for full details.
Department or Agency: Texas Department of Economic Development
Loan or Grant title: Original Capital Access Program
The Original Capital Access Program is a loan program designed to improve funding options for small and medium-sized businesses and nonprofits that face difficulties finding capital from traditional lenders. Texas small businesses with under 500 employees qualify if they have over 51% of their staff in Texas and are seeking financial support for activities that drive economic development. Acceptable uses include working capital or to purchase, construct, or lease buildings or equipment. The program works with two lenders: Lift Fund and People Fund.
Department or Agency: Texas Department of Economic Development
Loan or Grant title: Spaceport Trust Fund
The Spaceport Trust Fund exists to attract and support spaceport development corporations to promote viable business entities capable of launching and landing reusable spacecrafts from Texas. The Spaceport Trust Statue provides full eligibility details for spaceport development corporations. Grant funds cover costs for infrastructure development needed to establish a spaceport. The Texas Economic Development and Tourism Office solicits proposals from eligible applicants.
Department or Agency: Texas Workforce Commission
Loan or Grant title: Skills for Small Business
The Skills for Small Business program provides grants to local small businesses with under 100 employees, for employee training. The program pairs applicants’ full-time employees with training at local technical colleges or the Texas A&M Engineering Extension Service. While the program emphasizes newly hired workers, the program can also support training for employees hired within the prior 12 months of application submission. Awards range from $1,800 for new employees to $900 for incumbent workers already on staff but hired within the allowable time period. Only courses on active course catalogs are approved.
Department or Agency: Texas Workforce Commission
Loan or Grant title: Skills Development Fund
The Skills Development Fund helps Texas companies and trade unions fund the development and implementation of tailored training programs, unique to their organizations. Applicants must partner with local technical colleges, Workforce Development Boards, and economic development partners to develop the training programs. The program increases both the skills and wages of Texas workers while fostering economic development. Grant awards of up to $500,000 can be used for curriculum development, instructor fees, and training materials.
Department or Agency: Texas Agricultural Finance Authority (TAFA)
Loan or Grant title: Agricultural Loan Guarantee Program
The Texas Agricultural Loan Guarantee Program offers low-interest loans to start or enhance farming or ranching operations, or to launch an agricultural-related business in Texas. Loans follow a tiered structure, either the lesser of $250,000 or 90% of the loan amount, or the lesser of $500,000 or 80% of the loan amount. The applicant’s lender will submit a request for loan funding to TAFA on the borrower’s behalf. Acceptable uses are for working capital, or for purchasing or leasing machinery, facilities, or real estate. See the website for details.
Department or Agency: Texas Department of Agriculture
Loan or Grant title: STAR Fund
The Star Fund is designed to help Texas farmers, ranchers, and agribusiness owners recover from devastating natural disasters. To be eligible, the county where the business is located must have been declared a disaster by the Texas governor and the company must submit expenses not covered by insurance or other government programs. Available assistance covers 50% of eligible expenses, up to $4,000. Visit the website to view current disaster declarations and learn more.
Department or Agency: Center for Women Entrepreneurs – Texas Women’s University
Loan or Grant title: Texas Rural Woman Grant
The Texas Rural Woman Grant is an annual grant program that supports rural economic development in Texas by providing grants to woman-owned small businesses launching new or innovative projects. Awards are $10,000 per organization, which must be for-profit enterprises in business for more than three years and located in Texas. Funds can be used to acquire equipment, technology, inventory, or raw materials; purchase or install fixtures or display units; pay for marketing or other costs pre-approved by the Center for Women Entrepreneurs. Eligible counties can be found on the program website.
Department or Agency: Center for Women Entrepreneurs – Texas Women’s University
Loan or Grant title: Veteran Woman Grant
The Veteran Woman Grant is an annual grant program designed to support veteran-woman-owned small businesses in Texas. Awards are $5,000 per organization, which must be for-profit enterprises with at least a 51% ownership stake by an Honorably Discharged woman military veteran. Applicants can also be active duty with a discharge date, or Reservist/National Guard members. Funds can be used to acquire equipment, technology, inventory, or raw materials. They can also be used for marketing, and to purchase or install fixtures or displays. Any other use must be pre-approved by the Center for Women Entrepreneurs.
Department or Agency: Houston Fund for Social Justice and Economic Equity
Loan or Grant title: Wells Fargo Open for Business Grant Program
The Wells Fargo Open for Business Grant is an annual, joint program with the City of Houston designed to provide financial capital to historically underserved small businesses located within Houston, Texas. Eligible small businesses must have been established in Texas prior to 2022, be located in the City of Houston, and have 100 or fewer employees, including the owner. Grant awards range from $5,000 to $65,000, and can be used to purchase land, build, renovate, or purchase buildings or machinery, buy or update technology, or modernize streets, utilities, parking lots, or landscaping. See the full list of eligibility requirements, including target populations for applicants, by reading the program guidelines.
