Texas Capital Access Fund
The Texas Capital Access Fund is administered by the Texas Department of Economic Development and is designed to encourage the provision of loans to businesses and non-profit organizations. The program facilitates access to loans by entities that are not eligible for, or that might otherwise fall outside the guidelines of conventional lending. The program works by establishing reserve accounts at institutions that choose to participate in the program. These accounts act as credit enhancements to encourage participating institutions to make loans. This program benefits businesses with up to 500 or fewer employees or non-profit organizations. The borrower must be located in Texas and have 51% of its employees in Texas.
Texas Capital Fund
The Texas Capital Fund is an economic development grant and loan program designed to provide financial assistance to “non-entitlement communities” defined as either cities of under 50,000 population or counties of under 200,000 populations. Available programs are:
- The Infrastructure Development Program is designed to help communities fund public infrastructure needed to assist businesses that commit to create and/or retain permanent jobs. This program provides funds for project-specific infrastructure that may include water and sewer, street improvements, electric, telephone and fiber optic lines, pre-treatment facilities and railroad spurs. Full repayment of the funds is required for private infrastructure. Public infrastructure is not intended to require repayment. The minimum normal amount is $50,000; maximum amount is $750,000 (or not to exceed 50% of the total project cost and a minimum equity match of 10% of the total cost is required to be made by the business).
- The Real Estate Development Program is designed to provide financial resources to non-entitlement communities for real estate development that promotes business expansion or development.
- The Main Street Improvement Program is designed to foster and stimulate the development of small business by providing financial assistance for public infrastructure improvement within the central business district (such as sidewalks, streets and public utilities). These funds may not be used for architectural, engineering and design costs. Only cities designated as official Texas Main Street cities by the Texas Historical Commission may apply for these funds.
Texas Enterprise Fund
The Texas Enterprise Fund was created as a tool to attract business and create jobs in Texas. The prospect must make significant capital investment, provide high-quality jobs and complete an Enterprise Fund application. Projects require unanimous approval of the Governor, Lt. Governor and Speaker. Project criteria are evaluated on a regional basis.
Texas Leverage Fund (TLF)
The TLF offers loans to local Industrial Development Corporation (IDC) with an ongoing Section 4B sales tax for economic development. This fund is an added source of financing managed by the Texas Department of Economic Development for cities to borrow up to four or five times their anticipated annual economic development sales tax proceeds (up to $3M) to undertake business-related expansions and development, as well as community development-related projects such as sports, athletics, entertainment and pubic park purposes and events. The TLF can be used for interim, long-term or gap financing. Maturity dates of up to 15 years are available for the loans with rates being based on the Wall Street Journal prime. Texas Industrial Revenue Bond Program is designed to provide taxable and tax-exempt bond financing for land and depreciable property for industrial or manufacturing projects. Cities must form non-profit IDC or authorities on their behalf to issue taxable and tax-exempt bonds for eligible projects in their jurisdiction. The Texas Department of Economic Development administers this program.
Texas Linked Deposit Program
The Texas Linked Deposit Program was established to encourage lending to historically under-utilized businesses, non-profit corporations and small businesses at low, fixed-rate interest rates. Proceeds can be used for working capital and capital assets. The minimum loan amount is $10,000 and the maximum loan amount is $250,000. The State deposits funds in approved lending institutions that make loans to qualified businesses.
Texas Revenue Bond Program
The Texas Revenue Bond Program provides taxable and non-taxable bond financing for land and depreciable property for industrial or manufacturing projects. The industrial development corporation acts as a conduit through which monies are channeled. All debt service on the bonds is paid by the business, so the bonds do not constitute debt or obligation of the governmental unit or industrial development corporation.
Texas Skills Development Fund
The Texas Skills Development Fund is for customized job training for small and medium-sized businesses. Economic development is often dependent on the availability of a trained work force. The SDF is administered by the Texas Workforce Commission (TWC). They award grants for customized job training programs at the request of local business entities. Requests for training funds are initiated by a joint application of the involved business and the public community or technical college that will provide the training.