Austin's construction market has been one of the strongest in the nation, fueled by rapid population growth, major corporate relocations, technology campus development, and significant public infrastructure investment. Construction company owners in Austin can access city procurement programs, state workforce training grants, SBA bonding assistance, and tax incentives that support business growth and competitiveness.
This guide covers the most relevant programs for construction businesses in the Austin metro area.
City of Austin Procurement Programs
The City of Austin's Small and Minority Business Resources Department administers M/WBE certification and procurement programs for city construction projects. The city sets participation goals for M/WBE subcontractors on publicly funded construction projects including roads, utilities, public buildings, and infrastructure improvements.
Travis County Programs
Travis County administers capital improvement projects and infrastructure programs that create construction contracting opportunities. Construction firms registered with the county can access projects for road improvements, county facilities, flood control infrastructure, and other public works.
Texas HUB Certification
Construction firms owned by women, minorities, or service-disabled veterans can obtain Texas HUB certification for procurement preferences on state construction projects. State-funded projects in the Austin area — including TxDOT highway work, UT System construction, and state building projects — carry HUB participation requirements. HUB certification guide.
Skills Development Fund
Austin construction companies can partner with Austin Community College to access Skills Development Fund grants for worker training. The program covers trades training including electrical, plumbing, carpentry, equipment operation, and construction management.
SBA Surety Bond Guarantee
Small and emerging construction firms can access the SBA's Surety Bond Guarantee program for bonds up to $10 million. Bonding capacity is often the key constraint preventing smaller construction firms from bidding on larger government and commercial projects in Austin's active market.
SBA Lending
SBA 7(a) loans provide up to $5 million for working capital, equipment, and business acquisition. SBA 504 loans offer below-market fixed-rate financing for heavy equipment and facility purchases. Both programs have multiple approved lenders in the Austin area.
Section 179 Deduction
Construction companies can immediately expense qualifying equipment purchases — excavators, loaders, trucks, tools, and technology — under Section 179. Bonus depreciation provides additional first-year deductions on heavy construction equipment.
WOTC Tax Credits
Construction companies hiring from WOTC target groups can claim federal tax credits of $2,400 to $9,600 per qualifying hire. Austin's construction workforce includes many individuals from WOTC-eligible populations.
Find Programs That May Fit Your Business
Austin's construction market offers strong opportunities supported by city procurement programs, state HUB preferences, SBA bonding assistance, and workforce training grants.
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