The Rio Grande Valley, stretching along the Texas-Mexico border from Brownsville to McAllen and beyond, is one of the fastest-growing economic regions in the state. Businesses in the RGV may be eligible for federal, state, and local programs designed to support development in border communities, including cross-border trade incentives and rural development funding.
This guide covers the most relevant grants, loans, tax credits, and incentive programs available to Rio Grande Valley business owners.
Federal Programs
SBA Lending Programs
The SBA Rio Grande Valley District Office in Harlingen serves the entire region. Businesses may access SBA 7(a) loans up to $5 million, 504 loans for real estate and equipment, and Microloans up to $50,000 through local CDFIs including LiftFund and ACCION Texas.
USDA Rural Development
Many RGV communities qualify as USDA-eligible rural areas. The USDA Rural Business-Cooperative Service offers Business & Industry loan guarantees, Rural Business Development Grants, and the Rural Energy for America Program (REAP) for renewable energy and energy efficiency improvements.
Foreign Trade Zone Benefits
The RGV hosts Foreign Trade Zone facilities that allow businesses to defer, reduce, or eliminate customs duties on imported materials. Manufacturers and distributors handling cross-border goods may benefit significantly from FTZ designation.
State Programs
Texas Enterprise Zone Program
Many RGV communities are designated Enterprise Zones, offering state sales tax refunds to businesses that create jobs and make capital investments in economically distressed areas. The program provides refunds of up to $2,500 per qualifying job created.
Skills Development Fund
The Texas Workforce Commission's Skills Development Fund provides training grants through partnerships with South Texas College and Texas State Technical College. RGV businesses can access customized workforce training for their specific needs.
Texas Enterprise Fund
The TEF provides deal-closing incentives for businesses creating jobs and making capital investments in Texas. RGV businesses competing for relocation or expansion projects may be eligible for negotiated TEF awards.
Local and Regional Resources
Chapter 380/381 Agreements
Cities and counties throughout the RGV use Chapter 380 and 381 agreements to provide property tax abatements, infrastructure support, and economic development grants to qualifying businesses.
Regional CDFIs and Lenders
- LiftFund: Small business loans and technical assistance throughout the RGV.
- ACCION Texas: Microloans for entrepreneurs who may not qualify for bank financing.
- UTRGV SBDC: Free business consulting through the University of Texas Rio Grande Valley.
Cross-Border Trade Programs
RGV businesses engaged in cross-border commerce may benefit from NADBank financing, customs facilitation programs, and border commerce infrastructure resources available through local chambers of commerce and trade associations.
Steps for Rio Grande Valley Business Owners
- Check rural eligibility: Many RGV communities qualify for USDA programs unavailable in urban areas.
- Contact your local EDC: Each RGV city maintains an economic development corporation with local incentives.
- Visit the SBA Harlingen office: Get in-person help with federal lending and certification programs.
- Explore FTZ benefits: Businesses handling imported goods may reduce costs through Foreign Trade Zone status.
- Connect with UTRGV SBDC: Free consulting to identify and apply for relevant programs.
Find Programs That May Fit Your Business
Rio Grande Valley businesses may access a combination of federal, state, and local programs. The key is matching your specific business profile to available incentives.
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