Funding Programs

Texas is committed to providing and facilitating funding for companies and communities with expansion and relocation projects in the Lone Star 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. Here is some helpful information on organizations that provide financing for Texas-based small businesses and their communities:

Agriculture & Rural Infrastructure Development

The Grants Office within the Trade and Business Development Division of the Texas Department of Agriculture provides numerous state and federal grants, loans and cooperative agreements available to farmers/ranchers, universities and schools, non-profits and private entities across the Lone Star State. The division is focused on administering financing programs that empower rural communities, encourage healthy lifestyles, protect consumers and promote production agriculture. To find information on specific programs, click here.

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, click here.

Texas Leverage Fund

The Texas Leverage Fund (TLF) provides a source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to expand economic development through business expansions, business recruitment, and exporting. For more information, click here.

Industrial Revenue Bond Program

The State of Texas Industrial Revenue Bond Program (IRB) is designed to provide tax-exempt, or taxable financing, for eligible industrial or manufacturing projects as defined in the Development Corporation Act of 1979. The Act allows cities, counties, and conservation and reclamation districts to form non-profit industrial development corporations (IDCs) or authorities on their behalf. The purpose is to provide bond financing for projects within their jurisdictions. The IDC issues bonds to finance the capital costs for an industrial or manufacturing business. Generally, the bond debt service is paid by the business under the terms of a lease, sale, or loan agreement. As such, it does not constitute a debt or obligation of the sponsoring governmental unit, the IDC, or the State of Texas. For more information, click here.

Texas Military Value Revolving Loan Fund

The Texas Military Value Revolving Loan Fund is available for three main purposes: To assist defense communities in enhancing the military value of a military facility in their area; to provide financial assistance to defense communities for job-creating economic development projects that minimize the negative effects of a defense base realignment or closure decision that occurred in 2005 or later; and to provide financial assistance to defense communities for an infrastructure project to accommodate new or expanded military missions resulting from a base realignment and closure decision that occurred in 2005 or later. 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 percentage 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.