The Texas Leverage Fund is a program administered by the Texas Economic Development Bank that provides financing support for local economic development projects. Communities may leverage local sales tax revenue to access state-backed financing for infrastructure improvements that support business recruitment and expansion.
How the Texas Leverage Fund Works
The Texas Leverage Fund allows communities that collect economic development sales taxes (4A or 4B) to leverage those revenues for larger infrastructure projects. The program provides financing backed by future sales tax collections, enabling communities to fund business parks, infrastructure extensions, and site improvements that attract private investment.
Key Features
- Backed by: Local 4A/4B economic development sales tax revenue
- Purpose: Infrastructure for business recruitment and expansion
- Administered by: Texas Economic Development Bank
- Eligible projects: Business parks, utilities, roads, and site preparation
Benefits for Texas Businesses
While the Leverage Fund is a tool for communities rather than direct business lending, it benefits businesses indirectly by enabling communities to provide prepared sites, extended infrastructure, and improved business park facilities that reduce a business's development costs and timeline.
Which Communities Use the Leverage Fund
Communities with 4A or 4B economic development sales taxes may access the Leverage Fund. This includes hundreds of Texas cities and towns that have voter-approved economic development sales tax programs. Contact your local economic development corporation to learn whether Leverage Fund financing supports available business sites.
How Businesses Benefit
If your business is evaluating sites in Texas communities, ask the local EDC whether Leverage Fund financing supports infrastructure at available business locations. Communities with Leverage Fund-backed improvements may offer faster development timelines and reduced site preparation costs for businesses.
Find More Programs for Your Business
The Texas Leverage Fund for Small Businesses is just one of many programs that Texas businesses may be eligible for. Federal, state, and local governments offer a range of grants, tax credits, loans, and incentives.
Not sure which programs may fit your business? Our free screening report checks your business against 150+ verified programs and shows you which ones may match. Start your free screening →