Houston is the largest city in Texas and the fourth largest in the country, with an economy driven by energy, healthcare, aerospace, manufacturing, and an increasingly diverse tech and services sector. The city and surrounding Harris County offer a layered system of business incentive programs at the federal, state, and local level. This guide covers the most relevant programs for Houston small businesses in 2026.
Houston-Specific Programs
Houston Small Business Microloans and Grants
The City of Houston and the Houston-Galveston Area Council periodically administer small business grant and microloan programs funded through federal Community Development Block Grant (CDBG) allocations, American Rescue Plan Act funds, and local appropriations. These programs typically target businesses in underserved areas or owned by individuals from disadvantaged backgrounds. Award sizes have historically ranged from $5,000 to $50,000. Program availability and application windows change annually, so checking the City of Houston’s economic development page regularly is important.
Houston MBDA Business Center
Houston hosts one of the Minority Business Development Agency (MBDA) Business Centers, which provides free consulting, capital access assistance, contract procurement help, and strategic business planning for minority-owned businesses. The center does not provide grants directly, but helps businesses identify and apply for programs they may not be aware of.
Houston SCORE Chapter and SBDC Network
The Houston SCORE chapter provides free one-on-one mentoring from experienced business professionals. The University of Houston SBDC network offers no-cost business advising, market research, financial projections, and loan packaging. Both resources can help you identify grant and incentive programs relevant to your business.
State Programs Available to Houston Businesses
Skills Development Fund
Houston businesses can partner with Houston Community College, San Jacinto College, Lone Star College, or other area community colleges to access the Skills Development Fund. This grant pays for customized employee training at no cost to the employer. It is one of the most broadly accessible state incentive programs.
Texas Enterprise Fund
Large-scale projects in Houston may qualify for the Texas Enterprise Fund, the state’s deal-closing grant for companies making major expansion or relocation decisions. Houston’s scale and workforce make it a strong candidate location for TEF-funded projects.
Texas Emissions Reduction Plan (TERP)
Houston-area businesses in transportation, construction, or logistics may qualify for TERP grants for replacing or upgrading diesel-powered equipment. Houston falls within the nonattainment-area counties that receive priority for TERP funding.
Federal Programs With Houston Access
SBIR and STTR
Houston’s strength in energy, healthcare, and aerospace makes it a natural fit for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Eleven federal agencies fund SBIR grants, with Phase I awards of $50,000 to $275,000 and Phase II awards of $500,000 to $1.5 million. The Houston Technology Center and Rice University both support SBIR applicants in the area.
SBA Programs
Houston is served by the SBA Houston District Office, one of the most active SBA offices in the country. Programs available include SBA 7(a) loans up to $5 million, SBA 504 loans for major equipment and real estate, and SBA Microloans up to $50,000 through local intermediary lenders.
Work Opportunity Tax Credit
Any Houston employer hiring from target populations, including veterans, formerly incarcerated individuals, SNAP recipients, and long-term unemployed workers, can claim WOTC credits of $2,400 to $9,600 per qualifying hire. Texas Workforce Solutions offices in Houston process the certifications.
Local Property Tax Incentives
Houston and Harris County have used Chapter 380 (city) and Chapter 381 (county) economic development agreements to offer property tax abatements, sales tax rebates, and infrastructure support to businesses making significant investments. These are typically negotiated on a project-by-project basis and are most accessible to businesses creating a substantial number of jobs or making large capital investments.
HUB Certification
Houston-area businesses owned by minorities, women, veterans, or service-disabled veterans should consider Historically Underutilized Business (HUB) certification through the Texas Comptroller. HUB certification does not provide direct grant funding but opens access to billions in state procurement spending. Houston is home to some of the largest state purchasing agencies, including those in the Texas Medical Center.
How to Find the Right Programs
Houston’s size means there are more programs available than in most Texas cities, but it also means the landscape is harder to navigate. The right programs depend on your industry, business size, ownership demographics, and what you plan to invest in. Our screening report matches your business against 150+ verified programs, including Houston-specific resources, and shows you which ones may fit. Start your free screening →