McAllen is the economic hub of the Rio Grande Valley, one of the fastest-growing regions in Texas. With its position on the U.S.-Mexico border, strong international trade infrastructure, and growing healthcare and retail sectors, McAllen businesses have access to a unique combination of local, state, federal, and cross-border programs.
City of McAllen Programs
McAllen Economic Development Corporation
The McAllen Economic Development Corporation (MEDC) works to attract and retain businesses through incentive packages, site selection assistance, and business support services. MEDC can provide incentives for businesses creating jobs and making capital investments in the city, including property tax abatements and infrastructure support.
McAllen Foreign Trade Zone
McAllen operates a Foreign Trade Zone (FTZ) that provides customs advantages for businesses engaged in international trade. Goods can be imported, stored, assembled, manufactured, or processed within the FTZ with deferred, reduced, or eliminated customs duties. This is particularly valuable for businesses with supply chains crossing the U.S.-Mexico border.
Hidalgo County Resources
Hidalgo County is one of the most populous counties in Texas and offers county-level economic development support. The county works with regional organizations to facilitate workforce development, infrastructure improvements, and business attraction. Several areas within Hidalgo County carry federal HUBZone designations, providing contracting preferences for eligible businesses.
Regional Resources
Lower Rio Grande Valley Development Council
The LRGVDC serves as the regional council of government for the Valley area and administers federal and state programs including workforce development, economic development planning, and infrastructure funding. The council coordinates regional economic development efforts and can connect businesses with available programs.
SBA Lower Rio Grande Valley District Office
The SBA operates a district office in Harlingen that serves the entire Rio Grande Valley, including McAllen. This office provides access to SBA loan programs, counseling services, and contracting assistance. The office is a direct point of contact for Valley businesses exploring SBA programs.
UTRGV SBDC
The University of Texas Rio Grande Valley Small Business Development Center provides free business counseling and training to entrepreneurs throughout the Valley region. Services include business plan development, financial analysis, marketing assistance, and help navigating government programs.
State Programs for McAllen Businesses
McAllen businesses can access all Texas state programs. Programs with particular relevance to the Valley include:
- Texas Enterprise Fund: Deal-closing grants for major job creation projects.
- Skills Development Fund: Workforce training grants through South Texas College and other local institutions.
- Texas Capital Fund: Infrastructure grants for eligible communities in the region.
- State Trade Expansion Program: Export assistance grants, particularly relevant given McAllen's cross-border trade position.
- Texas HUB Certification: State procurement preferences for historically underutilized businesses.
Federal Programs
- SBA Loans: 7(a), 504, and microloan programs through Valley lenders.
- HUBZone: Many areas in the McAllen metro carry HUBZone designations, providing federal contracting preferences.
- SBIR/STTR: R&D grants for businesses conducting research with commercial potential.
- USDA Programs: Businesses in smaller communities surrounding McAllen may access USDA rural business programs.
- Opportunity Zones: Several census tracts in the McAllen area are designated Opportunity Zones, providing capital gains tax incentives for qualifying investments.
Cross-Border Trade Resources
McAllen's position on the U.S.-Mexico border makes international trade programs especially relevant:
- STEP grants for trade show attendance and international marketing
- Ex-Im Bank programs for export financing and insurance
- Foreign Trade Zone benefits for customs duty management
- USMCA provisions that benefit cross-border supply chains
Find Programs That May Fit Your Business
McAllen businesses are often eligible for programs at the city, county, state, and federal level simultaneously. Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →