Most Texas grant programs require a detailed budget as part of the application. A well-prepared budget demonstrates that you understand the true cost of your project and have a realistic plan for using grant funds effectively.
Standard Budget Categories
- Personnel: Salaries, wages, and benefits for staff working on the project
- Equipment: Capital equipment purchases over the program's threshold (typically $5,000+)
- Supplies: Consumable materials and supplies needed for the project
- Contractual: Services from third-party vendors, consultants, or subcontractors
- Travel: Transportation, lodging, and per diem for project-related travel
- Other direct costs: Rent, utilities, insurance, and other costs directly attributable to the project
- Indirect costs: Overhead costs — some programs allow a negotiated indirect rate, others do not
Common Budget Requirements
- Each line item must be justified with a clear explanation of how the cost was calculated
- Costs must be reasonable, necessary, and directly related to the project
- Matching funds must be clearly identified if the program requires cost-sharing
- Budget periods must align with the grant timeline
- Federal grants require compliance with 2 CFR 200 cost principles
Budget Preparation Steps
- Read the guidelines carefully: Each program has specific budget requirements and restrictions
- List all project activities: Map each activity to the costs it requires
- Get quotes and estimates: Use documented quotes for major expenses
- Calculate personnel costs: Use actual salary rates and estimate time allocation
- Identify matching funds: Document the source of any required cost-share
- Build in a contingency: Some programs allow a small contingency line (typically 5 to 10 percent)
- Have your SBDC review it: SBDCs provide free assistance with grant budgets
Download our grant budget template.
Common Budget Mistakes
- Including costs not allowed by the specific program
- Failing to document how costs were calculated
- Underestimating costs, which creates credibility concerns
- Not accounting for matching fund requirements
- Using round numbers without supporting documentation
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