Financing & Capital

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  • Financing & Capital

    In today's challenging economy, finding capital is one of the most crucial tasks for small businesses wishing to grow and thrive. The Governor's Office Small Business division works closely with a variety of partners to highlight the various avenues for access to capital that are available to the Texas small business community. These include but are not limited to:

    Small Business Service Provider Grant (SPG)

    The Governor’s Office of Small Business Assistance (OSBA) is accepting applications for programs that enable Texas-based small business service providers to enhance and diversify projects and activities benefiting the State’s small and historically underutilized businesses (HUBs). The grants will afford small business service providers a greater degree of flexibility and creativity in their portfolio of offerings to small businesses and HUBs. If you are interested in applying for a grant under this program, please read this additional information.

    Texas Product/Business Fund

    The Texas Product/Business Fund provides asset backed financing to companies doing business in Texas. Financing is done in the form of direct asset based loans with competitive lending rates. Loans can be amortized up to the life of the asset. For more information, visit the Incentives & Financing section of the website.

    Jobs 4 Texas (J4T)

    Jobs 4 Texas, or J4T, is an innovative program designed to increase small businesses' access to capital and enable private entrepreneurs to make market-driven decisions to grow jobs. The J4T program won a $46.5 million award from the U.S. Department of the Treasury as part of the State Small Business Credit Initiative (SSBCI). For more information, click here.

    Download an overview of Texas business incentives and programs available through the Governor's Economic Development Office.

    Lenders

    Texas is home to hundreds of commercial banks with billions in deposits. To find a Texas financial institution, visit the National Information Center's website.

    For international financial institutions in the state that enable international trade by issuing letters of credit, providing currency exchange, and making trade related loans, as well as financing projects in various countries, please visit the Texas Bankers Association and the Independent Bankers Association of Texas.

    Non-Profit Lenders

    • LiftFund
      The mission of LiftFund is to provide credit and service to small businesses that do not have access to loans from commercial sources, and to provide leadership and service to the micro-lending field on a national level. LiftFund provides individual business loans  from $500 to $1 million.  Through the SBA 504 loan program, they are able to offer loans up to $5.5 million. All loan funds repaid to LiftFund are reinvested in the community.
    • BCL of Texas
      Established in 1990 as a statewide not-for-profit, BCL of Texas successfully promotes business and community development and provides business capital and commercial real estate loans throughout Texas. True to its mission to create jobs through business development, BCL of Texas has helped to create jobs for more than 5,000 Texans. In addition to providing businesses with counseling and technical assistance, BCL of Texas originates, underwrites, processes, closes and services business loans for healthy, growing businesses.
      BCL of Texas is a member of the nationwide NeighborWorks® Network, which engages in revitalization strategies that strengthen communities and transform lives.
    • PeopleFund
      PeopleFund is a non-profit 501(c)(3) that provides loans and financial and technical assistance to people who are left out of the financial mainstream. PeopleFund administers small business and non-profit loans, business consulting, and technical assistance as well as a variety of other programs.
    • BiGAUSTIN
      BiGAUSTIN is a non-profit organization dedicated to providing comprehensive training services, one-on-one assistance, and loans to individuals who want to achieve self-sufficiency by starting their own small business. BiGAUSTIN is home to Central Texas’ only SBA Women’s Business Center which specializes in meeting the needs of women entrepreneurs. BiGAUSTIN has dispersed loan packages in excess of 6.5 million dollars and assists roughly 1,300 small business entrepreneurs annually.

    Small Business Administration Loan Programs

    Through its local SBA offices in Texas, the U.S. Small Business Administration (SBA) offers several loan programs that can provide financial aid to small businesses. Please visit the following links and offices to get more information:

    Federal Grants

    The federal government primarily provides grants for research and development. Below are a few websites that provide information about these grants and other types of assistance:

  • State Programs

    Finding the Money to Fund a Promising Project: The Governor's Economic Development Office Can Help You Explore Your Opportunities

    Texas is committed to providing and facilitating funding for companies and communities with expansion and relocation projects in the state. Asset-based loans for companies, leveraged loans to communities and tax-exempt bond financing are just a few means of obtaining the capital necessary for a successful project.

    The Texas Product Development and Small Business Incubator Fund, collectively PDSBI, is a revolving loan program financed through original bond issuances. The primary objective of the program is to aid in the development, production and commercialization of new or improved products and to foster and stimulate small business in the state. The fund provides asset-based lending with flexible loan terms, competitive Loan-to-Value (LTV) and interest rates. Loan proceeds can be used for a broad range of capital and operating expenditures. Your company can secure loans with property, plant and equipment which can be amortized over the life of the asset. Communities or individual investors can assist as Guarantors.

    To be eligible, applicants must have at least 3 years of operating history and have unencumbered assets available for collateral. Preference for funding is given to the state's defined industry clusters including, but not limited to: nanotechnology, biotechnology, biomedicine, renewable energy, agriculture and aerospace. Texas is interested in creating and retaining high-quality jobs. For additional information and application instructions, please read the PDSBI Program Overview or email the Economic Development Finance (EDF) department within the Governor's Economic Development & Tourism Office.

    Jobs 4 Texas, or J4T, is an innovative program designed to increase small businesses' access to capital and enable private entrepreneurs to make market-driven decisions to grow jobs. The J4T program won a $46.5 million award from the U.S. Department of the Treasury as part of the State Small Business Credit Initiative (SSBCI). For more information, click here.

    A Certified Capital Company (CAPCO) is a private government-sponsored venture capital company formed to increase the availability of growth capital for small businesses located in Texas. The program is also intended to stimulate job creation in Texas by requiring supported businesses to have at least 80 percent of payroll/manpower located within Texas. It's one way small businesses in Texas receive venture capital. 

    To be eligible, the business must be headquartered in Texas (or relocate to Texas within 90 days of the CAPCO's first investment); the business can have no more than 100 employees at the time of investment; 80 percent of payroll/workforce must be located within Texas; the primary business activity may be manufacturing, processing or product assembly, research and development or tangible services. The business may not be primarily engaged in retail sales, real estate development, insurance, banking, leasing, lending or professional services. By statute, a percetage of the CAPCO investments must be used for early stage businesses and businesses located in strategic investment areas. Get more information about CAPCO and the application process.

    Small Business Service Provider Grant (SPG) The Governor’s Office of Small Business Assistance (OSBA) is accepting applications for programs that enable Texas-based small business service providers to enhance and diversify projects and activities benefiting the State’s small and historically underutilized businesses (HUBs). The grants will afford small business service providers a greater degree of flexibility and creativity in their portfolio of offerings to small businesses and HUBs. If you are interested in applying for a grant under this program, please read this additional information.

    The Capital Access Program was established to increase the availability of financing for businesses and nonprofit organizations that face barriers in accessing capital or fall outside the guidelines of conventional lending.  To begin the process, the borrower must apply for a loan with a participating lender (listed below) with terms established between the borrower and the lender.

    Use of proceeds may include working capital or the purchase, construction, or lease of capital assets, which include buildings and equipment. Construction or purchase of residential housing and simple real estate investments (excluding those occupied by the applicant’s business), are ineligible uses of capital access proceeds.

    To be eligible, a borrower must be:

    • A small or medium-sized business(499 employees or less);
    • A nonprofit organization; or
    • Domiciled in this state or having at least 51% of its employees located in this state

    For more information download and review the following documents: CAP Program Summary and FAQs. You may also contact a participating lender listed below or call the Office of the Governor's Economic Development Finance department at (512) 936-0100.

    Capital Access Program Participating Lenders

    LiftFund 
    2007 W. Martin St.   
    San Antonio, Texas 78207 
    Office: (888) 215-2373
    Email: info@liftfund.com
    www.liftfund.com               

    PeopleFund
    2921 E. 17th Street, Bldg. D, Suite 100
    Austin, Texas 78702 
    Office (512) 472-8087
    Fax (512) 472-8191
    www.peoplefund.org

     

    Download an overview of Texas business incentives and programs available through the Governor's Economic Development Office.

  • Lenders

    Texas is home to hundreds of commercial banks with billions in deposits. To find a Texas financial institution, visit the National Information Center's website.

    For international financial institutions in the state that enable international trade by issuing letters of credit, providing currency exchange, and making trade related loans, as well as financing projects in various countries, please visit the Texas Bankers Association and the Independent Bankers Association of Texas.

    NON-PROFIT LENDERS

    • LiftFund
      The mission of LiftFund is to provide credit and service to small businesses that do not have access to loans from commercial sources, and to provide leadership and service to the micro-lending field on a national level. LiftFund provides individual business loans from $500 to $1 million. Through the SBA 504 loan program, they are able to offer loans up to $5.5 million. All loan funds repaid to LiftFund are reinvested in the community.
    • BCL of Texas
      Established in 1990 as a statewide not-for-profit, BCL of Texas successfully promotes business and community development and provides business capital and commercial real estate loans throughout Texas. True to its mission to create jobs through business development, BCL of Texas has helped to create jobs for more than 5,000 Texans. In addition to providing businesses with counseling and technical assistance, BCL of Texas originates, underwrites, processes, closes and services business loans for healthy, growing businesses.

      BCL of Texas is a member of the nationwide NeighborWorks® Network, which engages in revitalization strategies that strengthen communities and transform lives.
    • PeopleFund
      PeopleFund is a non-profit 501(c)(3) that provides loans and financial and technical assistance to people who are left out of the financial mainstream. PeopleFund administers small business and non-profit loans, business consulting, and technical assistance as well as a variety of other programs.
    • BiGAUSTIN
      BiGAUSTIN is a non-profit organization dedicated to providing comprehensive training services, one-on-one assistance, and loans to individuals who want to achieve self-sufficiency by starting their own small business. BiGAUSTIN is home to Central Texas’ only SBA Women’s Business Center which specializes in meeting the needs of women entrepreneurs. BiGAUSTIN has dispersed loan packages in excess of 6.5 million dollars and assists roughly 1,300 small business entrepreneurs annually.
  • Federal Programs

    SMALL BUSINESS ADMINISTRATION LOAN PROGRAMS

    Through its local SBA offices in Texas, the U.S. Small Business Administration (SBA) offers several loan programs that can provide financial aid to small businesses. Please visit the following links and offices to get more information:

    FEDERAL GRANTS

    The federal government primarily provides grants for research and development. Below are a few websites that provide information about these grants and other types of assistance: