Texas small businesses have access to a wide range of grants and incentive programs across federal, state, and local levels. The available programs span direct grants, tax credits, government-backed loans, workforce training funds, and procurement preferences. This article provides an overview of the major categories of programs available to Texas small businesses.
Federal Grant Programs
SBIR and STTR Research Grants
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide competitive grant awards to small businesses conducting research and development. Eleven federal agencies participate, and awards range from $50,000 in Phase I to over $1 million in Phase II. These programs are open to for-profit small businesses in any state, including Texas.
USDA Rural Business Grants
Texas businesses in rural areas can access USDA Rural Business Development Grants (RBDG), Rural Energy for America Program (REAP) grants, and other USDA programs. RBDG grants fund business development activities including technical assistance, training, and planning. REAP grants fund energy efficiency improvements and renewable energy systems. Full guide to rural programs.
SBA Programs
While the SBA primarily administers loan programs rather than direct grants, it also operates the SBIR/STTR programs, certification programs (8(a), WOSB, HUBZone), and the State Trade Expansion Program (STEP) which provides grants for export activities. SBA loans vs grants explained.
State of Texas Programs
Texas Enterprise Fund
The Texas Enterprise Fund is the state's largest discretionary economic development incentive. It targets large-scale projects that create significant jobs and investment. While most small businesses do not qualify for the Enterprise Fund directly, understanding its existence helps frame the overall incentive landscape.
Skills Development Fund
The Skills Development Fund is one of the most accessible state programs for small businesses. It provides grants for customized workforce training delivered through partnerships between employers and public community or technical colleges. Businesses of any size can participate. Workforce training grants guide.
Texas Capital Fund
Administered by the Texas Department of Agriculture, the Texas Capital Fund provides funding for infrastructure improvements and real estate development in rural communities. Businesses that create or retain jobs in non-entitlement areas may benefit from these funds indirectly through their local communities.
Texas HUB Program
The Historically Underutilized Business program provides procurement preferences for state contracts. While not a direct grant, HUB certification gives qualifying businesses access to billions of dollars in state procurement opportunities. HUB certification details.
Tax Credit Programs
Tax credits are not grants, but they provide direct financial value:
- Federal R&D Tax Credit: Available to businesses conducting qualifying research activities. No industry restriction.
- Texas franchise tax credits: Including the R&D credit against franchise tax, clean energy credits, and veteran employment credits.
- Work Opportunity Tax Credit: Federal credit for hiring individuals from targeted groups.
- New Markets Tax Credit: For investments in low-income communities.
Complete guide to Texas business tax credits.
Local and City Programs
Texas cities and counties administer their own incentive programs:
- Chapter 380/381 agreements: Cities and counties can offer property tax abatements, grants, and infrastructure support for economic development projects.
- City microenterprise grants: Small grant programs for businesses with fewer than five employees.
- MBE/WBE city certifications: Municipal procurement preference programs for minority and women-owned businesses.
- Utility rebate programs: Energy efficiency rebates from CPS Energy, Austin Energy, Oncor, and other utilities.
Houston programs | Dallas programs | San Antonio programs
Demographic-Specific Programs
Industry-Specific Programs
How to Narrow the List
With so many programs available, the challenge is not finding programs — it is identifying which ones actually match your business. Our screening report checks your business against 150+ verified programs and identifies the ones that may fit your specific situation. Start your free screening →