Texas towing companies serve an essential role in keeping roads safe and vehicles moving. Whether you operate a light-duty wrecker service, heavy-haul recovery operation, or roadside assistance business, there are government programs that may help with truck purchases, equipment upgrades, workforce costs, and government contracting.
TERP Emissions Reduction Grants
Texas Emissions Reduction Plan
The TCEQ administers TERP grants that can cover a significant portion of the cost of replacing or repowering older diesel tow trucks with cleaner alternatives. Towing companies operating in non-attainment areas — including the DFW, Houston, San Antonio, and Austin metro areas — are eligible. Grants can cover new truck purchases, engine repowers, and conversions to alternative fuels.
Diesel Emissions Reduction Act (DERA)
Federal EPA DERA grants provide additional funding for diesel fleet upgrades. While these grants are competitive and often administered through regional agencies, towing companies with older diesel fleets should monitor for open solicitations.
SBA Lending Programs
SBA 7(a) Loans for Tow Trucks
SBA 7(a) loans up to $5 million can finance tow truck purchases, heavy recovery equipment, flatbed carriers, dispatch systems, and working capital. The government guarantee improves approval odds for towing companies that may not meet conventional lending criteria.
SBA 504 Loans
Towing companies purchasing their yard, building a vehicle storage facility, or investing in heavy equipment can use SBA 504 loans for long-term, fixed-rate financing with as little as 10% down.
Government Contracting
Municipal and County Towing Contracts
Cities, counties, and law enforcement agencies contract with towing companies for non-consent towing, impound services, and abandoned vehicle removal. Getting on approved vendor lists requires meeting insurance, licensing, and facility requirements.
TxDOT Contracts
The Texas Department of Transportation contracts with towing and recovery companies for highway incident management. These contracts can provide steady revenue for qualified operators.
HUB Certification
Qualifying towing companies can get HUB certification for preferences on state contracts. Learn about HUB certification.
Workforce Programs
- WOTC hiring credits: Tax credits of $2,400 to $9,600 for hiring workers from eligible target groups.
- On-the-job training: Workforce Solutions boards may subsidize wages during the training period for new tow truck operators.
- CDL training assistance: Some workforce programs cover CDL training costs for drivers operating heavy-duty wreckers.
Insurance and Compliance
While there are no specific grants for towing insurance costs, maintaining proper TDLR licensing, insurance coverage, and storage facility standards is essential for accessing government contracts and avoiding costly violations.
Find Programs That May Fit Your Business
Not sure which programs may fit your business? 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 →