Texas border towns, from El Paso through Laredo, McAllen, and Brownsville, form one of the most economically dynamic border regions in the world. Businesses in Texas border communities may be eligible for cross-border trade programs, Foreign Trade Zone benefits, federal rural development funding, and state incentives designed to support economic growth in border areas.
This guide covers the most relevant grants, loans, tax credits, and incentive programs for businesses in Texas border towns.
Cross-Border Trade Programs
Foreign Trade Zones
Texas border cities host some of the most active Foreign Trade Zones in the country. FTZ designation allows businesses to defer, reduce, or eliminate customs duties on imported goods used in manufacturing, processing, or distribution. Major FTZs operate in El Paso, Laredo, McAllen, and Brownsville.
STEP Export Grants
The SBA State Trade Expansion Program provides grants for small businesses to attend international trade shows, develop export marketing materials, and participate in trade missions. Border businesses with existing cross-border relationships are well positioned for STEP funding.
U.S. Commercial Service
The U.S. Commercial Service maintains offices along the Texas border providing trade counseling, market research, and buyer matchmaking services for businesses seeking to export.
Federal Programs
SBA Lending
SBA district offices in El Paso and the Rio Grande Valley serve border businesses. The full range of SBA lending programs is available, including 7(a), 504, Microloans, and export-specific programs like SBA Export Express and Export Working Capital.
USDA Rural Development
Many border communities outside the largest cities qualify for USDA rural programs including Business & Industry loan guarantees and REAP energy grants.
State Programs
Texas Enterprise Zone
Border communities widely carry Enterprise Zone designations, allowing businesses to receive state sales tax refunds for job creation and capital investment in economically distressed areas.
Skills Development Fund
Border-area community colleges partner with the TWC to provide customized workforce training grants. Bilingual workforce training is a particular strength of border programs.
Local Resources
- Borderplex Alliance (El Paso): Regional economic development for the El Paso-Juarez-Las Cruces region.
- Laredo Development Foundation: Incentive packages for manufacturing, logistics, and trade-related businesses.
- McAllen EDC: Active recruitment and retention programs for Valley businesses.
- Brownsville EDC: Incentives with emphasis on manufacturing and international trade.
NADBank Financing
The North American Development Bank provides financing for environmental and community infrastructure projects in the border region. Businesses involved in environmental services, water treatment, and clean energy may benefit from NADBank-supported projects.
Steps for Border Business Owners
- Explore FTZ benefits: Businesses handling imported goods should evaluate Foreign Trade Zone status.
- Contact the local SBDC: UTEP, UTRGV, and TAMIU SBDCs serve border communities.
- Review export programs: STEP grants and SBA export lending support cross-border trade.
- Check Enterprise Zone: Incentives for job creation and capital investment.
- Talk to your city EDC: Border cities compete aggressively for business investment.
Find Programs That May Fit Your Business
Texas border businesses may access trade, rural, and general Texas programs simultaneously. Our screening report matches your business against all applicable programs. Start your free screening →