San Marcos sits in the center of the Austin-San Antonio corridor, one of the fastest-growing regions in the country. Home to Texas State University and a growing commercial base, San Marcos businesses have access to local economic development programs, Hays County resources, and the full range of state and federal funding programs.
City of San Marcos Economic Development
San Marcos Economic Development Programs
The City of San Marcos and its economic development partners work to attract and retain businesses through incentive packages that may include property tax abatements, fee waivers, and infrastructure support. The city's economic development efforts focus on diversifying the local economy beyond retail and tourism, with emphasis on manufacturing, technology, and professional services.
Type A and Type B Economic Development Corporations
San Marcos operates economic development corporations funded by dedicated sales tax revenue. These corporations can provide incentive packages for businesses creating jobs and making capital investments in the city. Businesses considering expansion or relocation to San Marcos should contact the local economic development office to discuss available incentives.
San Marcos Main Street Program
The San Marcos Main Street Program supports downtown business development through facade improvement assistance, marketing support, and coordination with historic preservation programs. Downtown businesses may access resources for building renovation and storefront improvements.
Hays County Resources
Hays County has experienced significant population and economic growth, and county-level resources are expanding to support business development. Businesses located in Hays County can explore county economic development initiatives and connect with regional planning through the Capital Area Council of Governments (CAPCOG).
Texas State University Resources
Texas State University provides several resources relevant to local businesses:
- SBDC: The Texas State University Small Business Development Center provides free business counseling and training to entrepreneurs in the region.
- Workforce pipeline: The university produces graduates across business, technology, engineering, and healthcare programs, providing a talent pipeline for local employers.
- Research partnerships: Businesses conducting R&D may explore partnership opportunities with university departments.
State Programs Available to San Marcos Businesses
San Marcos businesses can access all Texas state programs, including:
- Texas Enterprise Fund: Deal-closing grants for major job creation projects.
- Skills Development Fund: Workforce training grants through community college partnerships. Austin Community College and local technical colleges serve the San Marcos area.
- Texas HUB Certification: State procurement preferences for historically underutilized businesses.
- Enterprise Zone Program: Sales tax refunds for job creation in economically distressed areas, where applicable.
- Franchise Tax R&D Credit: Credits for businesses conducting qualified research activities in Texas.
Federal Programs
San Marcos businesses have access to the full range of federal programs:
- SBA Loans: 7(a), 504, and microloan programs through the San Antonio SBA District Office.
- SBIR/STTR: R&D grants for businesses conducting research with commercial potential.
- HUBZone: Federal contracting preferences for businesses in designated zones. Some areas in the San Marcos region may carry HUBZone designations.
- WOTC: Federal tax credits for hiring from targeted groups.
I-35 Corridor Advantage
San Marcos benefits from its position on the I-35 corridor between Austin and San Antonio. This location provides access to two major metro economies, major transportation infrastructure, and a growing population base. Businesses with distribution, logistics, or regional service operations find San Marcos strategically positioned. The area's lower commercial real estate costs compared to Austin and San Antonio can also be an advantage.
Find Programs That May Fit Your Business
San Marcos businesses are often eligible for local, state, and federal programs 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 →