Financial support is the master key to funding and growing any small business. It opens up resources, creates security, and allows you to develop your business how you want.
While there are many ways to get financial support, one of the best is through business grants. Not only are they a great asset, but they are unlike loans and many of them don’t have to be paid back. How often does that happen?
There are many different grants available for small business owners. And the only way to know which ones are right for you is to get to know what’s out there. If you’re thinking of starting a business in Texas, you’ve come to the right place.
In this article, we’ll the best small business grants Texas to give you a clearer idea of what funding you might be eligible for.
15 Small Business Grants Texas
1. The Texas Enterprise Fund
The Texas Enterprise Fund is an excellent example of a grant that tells your story. To be eligible, applicants must have generated at least 75 full-time jobs in urban areas (or 25 full-time jobs in rural areas) with wages above the average county wage. This shows that you’ve made a positive impact for your county. If your business is based in Texas and has a significant employee turnover rate (as in, you have a lot of people coming in and out as employees) this fund could be a great option.
2. Texas Workforce Commission’s Skills for Small Business Grant Program
The Texas Workforce Commission’s (TWC) Skills for Small Business Program provides grant funding to small businesses to invest in training full-time employees. Employees can enroll in training offered by their local community colleges, technical colleges or the Texas Engineering Extension Service.
Businesses can receive up to $1,800 per year for each new employee and $900 for every existing employee. Your business must have fewer than 100 employees to be eligible for the TWC grant. Online applications for this TWC grant program are accepted at any time during the year.
3. The Skills for Small Business
Awarded by the Texas Workforce Commission, this grant is given to businesses to assist them in training their employees. If you are adding people to your team, this could be a contender for you. It offers $1,800 per new employee and $900 per existing employee. Businesses with less than 100 people are welcome to apply. To submit an application, follow the instructions here.
4. The Texas Young Farmer Grant
The Young Farmer Grant is geared towards the development of agriculture (…did you see that coming?). It’s available to young business owners between the ages of 18 and 46. This organization will provide up to $20,000, but the amount is contingent upon the applicant and whether they match dollar-to-dollar expenditure (meaning, the grant will match your business expenses so that you break even on them). If you are eligible for the maximum amount, you would need to raise at least $10,000.
5. The State of Texas Trade Expansion Program
This is another great option for agricultural entrepreneurs. The objective of the State Trade Expansion Program is to increase the number of small Texas businesses that are exporting their goods to foreign markets and to increase the value of those goods and services.
Texas businesses that meet the SBA’s Small Business Concern guidelines are able to apply. They also must be able to receive federal funding, have a product created in Texas, have been in business for at least a year, and demonstrate that they understand exportation costs.
6. Texas Enterprise Fund
Businesses that want to open a new facility or expand an existing one may be eligible to receive a grant from the Texas Enterprise Fund (TEF). Eligible projects must generate at least 75 full-time jobs in urban areas or at least 25 full-time jobs in rural areas. Wages must meet or exceed the average county wage where the project will be located. The project must also be supported by the local county government where it takes place.
Awards typically range from $1,000 to $10,000 per qualified job. Amounts are calculated based on an analytical model that uses factors such as the average wage for new employees, the number of jobs created and the company’s total proposed capital investment.
The application process involves a lengthy due diligence that includes areas such as project competitiveness, estimated economic impact, financial standing, tax status, credit ratings and legal issues among other things. Applications are accepted on a rolling basis.
7. Texas Job Creators Grant
This annual grant program is open to Texas-based small businesses with a founder who belongs to one of the following categories: Latinx, Black, Asian, military veteran, women or located in a low-to-moderate income area. The Texas Job Creators Grant awards $4,000 to 25 businesses. Pre-registration is open now and the full application launches in August 2024.
8. BMO Celebrating Women Grant
Texas businesses that are located within 100 miles of a BMO full-service branch may be eligible for this grant program, which is a collaboration between BMO and Deloitte. The BMO Celebrating Women grant program will award $10,000 to 15 businesses that are at least 51% women-owned. Additional eligibility requirements include that your business must have been in operation for at least two years and cannot have more than $5 million in annual revenue.
9. Center for Women Entrepreneurs StartHER Grant
The Center for Women Entrepreneurs at Texas Women’s University offers StartHER Grants in the amount of $5,000 to women-owned small businesses in Texas. Twenty-five grants will be awarded this year to businesses that are at least 51% owned/controlled by women who are U.S. citizens or permanent residents. Eligibility is also restricted to businesses with no more than five full-time employees — with two part-time employees equivalent to one full-time employee.
StartHER Grant funds can be used for a wide range of purposes from purchasing equipment, inventory or raw goods to marketing and social media campaigns.
10. The Alamo Small Business Grant Program
If your business resides in Alamo, you are eligible to apply for the Alamo Small Business Grant Program. It can grant you up to $2,500, but it’s exclusively for renovation, signage, and equipment purchases. Your business must also have been active for at least two years.
To note, this grant’s application process can be a bit complex. You must provide your tax returns for the past two years of business and a detailed description of your business operations.
11. The Amber Grant for Women
This is a great option for female entrepreneurs and is open to female business owners across the United States, not only in Texas. Even better, it has the simplest application process from the grants discussed in this article (woo!). All you need to do is fill out a brief form detailing your business and how it will benefit from or use the grant money. Due to the easy application process, this grant is likely to be competitive, just FYI. Put a unique spin on your application to make it stand out from the competition!
12. The Fiserv + Clover Back2Business Grant Program
This grant is aimed at small-scale, minority-owned businesses with less than $1 million yearly revenue and fewer than 11 employees. The grant is designed to help Black and minority business owners get back to work following the COVID-19 pandemic. Applicants need to show that their business has been impacted by the pandemic and that they existed before COVID-19 lockdowns.
13. Veteran Woman Grant
Another grant program offered by Texas Women’s University, the Veteran Woman Grant is open to Texas-based small businesses that are women veteran owned
14. The Fort Bend County Small Business Emergency Grant Program
If you aren’t eligible for the Fiserv+ Clover program but your business has been impacted by the pandemic, the Fort Bend County Small Business Emergency Grant program could be a suitable alternative. Eligible businesses must have existed before December 30, 2019 and be able to show a revenue decline of at least 15% throughout 2019 and 2020.
If your annual revenue in 2020 was between $25,000 and $100,000, you may be entitled to a grant of $5,000. Similarly, if your income was between $100,000 and $200,000, you could receive up to $15,000, and if your annual revenue was between $2 and $5 million, you could see up to $25,000.
15. The Southern Smoke Emergency Relief Grant Program
The Southern Smoke Emergency Relief Program is devoted to hospitality. This grant is aimed at helping owners and operators of restaurants or bars who face unplanned expenses not covered by insurance. It can be used for paying doctor bills, building repairs, and other situations, like natural disasters.
6 Texas Small Business Grants
In addition to state programs, the following cities in Texas offer grants to small-business entrepreneurs located in their communities.
1. Open for Business Grant Program in Houston
The Wells Fargo Open for Business Grant Program is designed to advance the mission of the Houston Equity Fund by investing in diverse-owned small businesses with 100 or fewer employees located in vulnerable communities in Houston. Grants can range from $5,000 to $100,000 and can be used for the purchase of property, equipment and other assets.
2. Verizon Small Business Digital Ready Community Grant
Houston-based businesses may be eligible for this $10,000 grant offered by Verizon. Applicants must sign up for Verizon’s Small Business Digital Ready (it’s free to join). And complete two small business resources.
3. Amegy Bank Small Business Boost Program
The Amegy Bank Small Business Boost Program, created by Amegy Bank and the Houston Texan football franchise. It’s available to small businesses in the greater Houston area. Program winners receive a $5,000 grant, access to event opportunities and marketing and promotional support.
To be eligible for the program:
- the business must be small
- operate for profit
- have annual revenue of less than $20 million
- and fewer than 500 employees.
4. Dayton Community Development Corporation grant programs
Dayton Community Development Corporation offers grants for small businesses that focus on the Downtown District of Dayton. To qualify for these programs, businesses must be within designated locations in the city.
The Dayton Downtown Improvement Grant provides up to $25,000, as a 50% match for activities such as:
- interior renovations
- signage
- landscaping
- improvement to the building and parking lot.
Along the same lines, the Dayton Small Business Grant offers funding up to $7,500 for exterior projects and also $7,500 for interior projects — on a 50% match basis.
5. San Antonio Economic Development Department grant programs
The San Antonio Economic Development Department grant programs are available to small businesses in the city. A variety of grants are offered to assist businesses with exterior improvements, noise mitigations, improved outdoor amenities, increased staffing and expanding into new markets.
Grant amounts are available from $2,000 to $50,000, depending on the program. Specific details about each grant program including application deadlines are available on the EDD website.
6. Lubbock Economic Development Alliance grants
Lubbock Economic Development Alliance grant programs are open to businesses located in downtown Lubbock or in a designated commercial revitalization area. The Commercial Revitalization Grant Program is designed to assist with expenses related to property improvements with reimbursements ranging from 10% to 50% of qualified expenses up to $50,000, depending on the project.
In addition to being located in the required areas, the applicant must be the owner or tenant of the property and be current on property taxes. Improvements must meet the city guidelines and the grant must be made before starting construction.
How to Get a Small Business Grant in Texas
Getting a grant for your small business might seem daunting. But like all other aspects of setting up shop in Texas, you have to take it one step at a time.
As a small business owner, you are bound to have numerous goals, and we get that they can all seem equally important.
But if you focus on one goal at a time for 45 or 30 minutes per day and do so on a regular basis, you can see some positive results, especially for things like finding funding.
1. Devote time to applying for grants
Start with the research process. Sift through potential grants until you have a few to apply for. Then go for it! It’s important to devote the right amount of time to applications, even if it’s only 30 minutes per day. It will be beneficial to keep track of your application details in a spreadsheet or document to keep everything organized, and to remind you of the progress you’re making.
2. Consider your eligibility
The best way to save time and streamline the application process is to keep eligibility criteria top of mind. It might sound basic. But by focusing on eligibility you can quickly identify which grants are a good fit for you and which are not worth your time.
This will allow you to focus only on those that deserve your attention. The last thing we want you to do is write a killer application only to discover your dog-walking business doesn’t technically qualify as an “outdoor” service per the grant’s criteria *gasp*.
3. Assess grant application fees
There isn’t a standard when it comes to grant application fees, and some will cost more than others. If you apply for several grants at once, the fees incurred could be substantial. For example, the Texas Enterprise Fund has an entry fee of $1,000, so you’ll want to prepare for that. Check out how much your applications will cost and then set a budget to help you afford these fees.
4. Consider Texas small business grant alternatives
Applying for grants doesn’t guarantee you will win them, unfortunately, but there are several alternatives to getting your business some well-deserved financial support. It could be wise to consider a few alternatives, such as a loan through a Texas small business bank.
Unlike grants, loans are guaranteed if you meet the eligibility criteria. However, they also have to be paid back over a period of time. Luckily, many of the SBA loans have simple stipulations and zero interest rates. Opting for a small business loan ultimately comes down to you, your business, and how you see things developing over time.
If you don’t have the time for grants and don’t like the idea of loans, consider running a crowdfunding campaign. Crowdfunding can create public interest in your business.
If you write an engaging description and present your case well (through video or other artistic means). You stand a good chance of pulling interested parties into your sphere, along with their funding. These parties will want to see your company come to life through their active investment.
Frequently Asked Questions
Who provides small business grants in Texas?
Local and state government agencies offer a variety of small business grants in Texas.
You can compare small business grants in Texas with similar programs in other states, such as:
- Small Business Grants Michigan
- Illinois Small Business Grants
- Small Business Grants Ohio
- Colorado Small Business Grants
- Small Business Grants Arizona
- Indiana Small Business Grants
How can startups in Texas access funding programs specifically designed for them?
Startups in Texas can tap into programs like the Skills for Small Business initiative by the Texas Workforce Commission, which aids eligible small businesses in employee training.
What are the eligibility criteria for obtaining small business grants Texas?
Eligibility requirements vary by program, but often include criteria such as the number of employees, business revenue, and alignment with the grant’s objectives.
Where can I find information on free grants available for starting a business in Texas?
Information on grants can be found through Texas government websites and small business development centers. For instance, the governor’s Small Business Credit Initiative announces new programs for business financing.
Which are the top-rated small business funding programs available in Texas?
Some of the top-rated programs include the Texas Small Business Credit Initiative and local grants like Fort Bend County’s Small Business Emergency Assistance Program.
What steps are involved in applying for a $10,000 small business grant Texas?
The application process generally involves submitting a business plan, providing financial statements, and often completing specific program applications. Each program will have its unique steps and requirements to follow.
What funding opportunities exist for small businesses in Houston, Texas?
Houston offers several funding opportunities aimed at small business expansion and job creation in the region. Information on various programs can typically be found through local economic development offices.
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