Starting a construction company in Texas requires capital for equipment, bonding, insurance, and working capital to fund projects before payment. Construction businesses have access to several government programs that can reduce costs and provide financing. See our full construction grants guide.
SBA Lending
- SBA 7(a): Working capital, equipment purchases, and bonding support. SBA 7(a) can help construction companies manage cash flow during project execution. SBA 7(a) for construction.
- SBA 504: Equipment and real estate financing for established construction businesses. 504 guide.
- SBA Surety Bond Guarantee: The SBA can guarantee surety bonds up to \$6.5 million for small contractors, making it easier to qualify for bonding.
Tax Benefits
- Section 179: Deduct heavy equipment, vehicles, tools, and technology in the year of purchase.
- WOTC: Hiring tax credits for construction workers from eligible target groups.
- R&D Tax Credit: Construction companies developing innovative building methods or materials may qualify for R&D credits.
Workforce Programs
- Skills Development Fund: Training grants for construction trades through community college programs. Skills Fund for construction.
- Registered apprenticeships: State-supported apprenticeship programs for construction trades. Apprenticeship guide.
- On-the-job training subsidies: Workforce Solutions programs for new hire training.
Certifications and Contracting
- HUB Certification: Access to state construction contracts with procurement preferences. HUB guide.
- 8(a) Certification: Set-aside federal construction contracts. 8(a) guide.
- DBE Certification: Disadvantaged Business Enterprise for federally funded construction projects.
Steps to Start a Construction Company
- Get licensed and bonded. Texas requires registration and bonding for many construction trades.
- Explore SBA Surety Bond Guarantee if bonding capacity is limited.
- Apply for HUB and DBE certifications for government construction work.
- Partner with community colleges for Skills Development Fund training grants.
- Maximize Section 179 on equipment purchases.
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