Waco sits in the heart of Central Texas along the I-35 corridor, positioned between Dallas-Fort Worth and Austin. Home to Baylor University and a revitalized downtown driven by tourism and small business growth, Waco has experienced significant economic development in recent years. Businesses in the area have access to local incentive programs, regional resources, and the full range of state and federal programs.
City of Waco Programs
City of Waco Economic Development
The City of Waco's economic development program provides incentives for businesses creating jobs and making capital investments. The city can offer property tax abatements under Chapter 312, Enterprise Zone nominations for state sales tax refunds, and coordination with state-level incentive programs. Waco's economic development efforts focus on manufacturing, technology, healthcare, and tourism-related businesses.
Waco Industrial Foundation
The Waco Industrial Foundation works to attract industrial and commercial businesses to the Waco area through site selection assistance, incentive coordination, and business support services. The foundation manages industrial parks and development sites available for business expansion.
Tax Increment Financing (TIF) Districts
Waco operates TIF districts in targeted areas including downtown and other development zones. Businesses within TIF districts may benefit from public infrastructure improvements and, in some cases, direct development incentives funded by the TIF.
McLennan County and Regional Resources
Heart of Texas Council of Governments
The Heart of Texas Council of Governments coordinates regional planning and administers federal and state programs for the six-county region. Programs include workforce development, economic development planning, and infrastructure funding.
Heart of Texas Workforce Board
The local workforce board administers federal WIOA programs and coordinates employer workforce services. The board can connect businesses with on-the-job training reimbursements, job posting services, and labor market information.
Baylor University Resources
Baylor University provides workforce talent and resources for local businesses:
- SBDC: The Baylor SBDC provides free business counseling to entrepreneurs in the Central Texas region.
- Research partnerships: Opportunities for businesses to partner with university research programs.
- Workforce pipeline: Graduates in business, engineering, healthcare, and technology fields.
McLennan Community College
MCC serves as a workforce training partner for Skills Development Fund grants and other programs. The college offers technical programs aligned with regional employer needs in manufacturing, healthcare, and industrial technology.
State Programs for Waco Businesses
- Texas Enterprise Fund: Deal-closing grants for major job creation projects.
- Skills Development Fund: Workforce training grants through MCC and other regional institutions.
- Texas HUB Certification: State procurement preferences for historically underutilized businesses.
- Enterprise Zone Program: Sales tax refunds for job creation in economically distressed areas.
- Manufacturing Sales Tax Exemption: Equipment used in manufacturing is exempt from state sales tax.
Federal Programs
- SBA Loans: 7(a), 504, and microloan programs through the Dallas/Fort Worth SBA District Office.
- SBIR/STTR: R&D grants for businesses conducting research with commercial potential.
- HUBZone: Some areas in the Waco region carry HUBZone designations for federal contracting preferences.
- Opportunity Zones: Designated census tracts in Waco provide capital gains incentives for qualifying investments.
- USDA Programs: Communities surrounding Waco that meet rural population thresholds can access USDA rural business programs.
I-35 Corridor Advantage
Waco's position on I-35 between DFW and Austin provides strategic advantages for distribution, logistics, and regional service businesses. The area's lower commercial real estate and labor costs compared to the larger metros, combined with easy access to both markets, make Waco attractive for businesses serving Central Texas.
Tourism and Small Business Growth
Waco has experienced a tourism boom in recent years, driving growth in hospitality, retail, and food service businesses. While tourism-specific grant programs are limited, tourism businesses can access workforce training grants, SBA lending programs, and local business development support.
Find Programs That May Fit Your Business
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