Texas has the highest number of Fortune 500 companies in the World.
From a skilled workforce to friendly business climate, and regulatory practices—Texas offers terrific opportunities for businesses to launch, grow, and thrive.
One such opportunity is access to hundreds of federal, corporate, and private grants to businesses in Texas.
Well, no more reasons to not pursue your business dream!
In this blog post, we’ve curated a list of the best small business grants in Texas for you.
Without any further ado, let’s dive right in.
Types of Small Business Grants in Texas
Here’s a list of different small business grants available in Texas:
Government business grants
Let’s explore federal and state government grants available to people in Texas.
1. Small Business Development Centers (SBDC)
SBDC provides counseling and training to small business owners. They also help in working with the Small Business Administration (SBA) to support entrepreneurs and business owners.
SBDC even assists in problem-solving business and helps develop new technologies. They are often associated with state agencies to help provide grants to small business owners.
Learn more about SBA-powered SBDC grants, here
2. State Trade Expansion Program (STEP)
The STEP grant helps in growing the volume and value of small business exports. STEP assists state governments, who in turn help entrepreneurs enter and expand a business into the international markets with small business funding.
Such government business grants can be used to participate in international trade shows and enhance e-commerce capabilities.
Learn more about STEP, here
3. Texas Enterprise Fund (TEF)
Companies considering shifting out of Texas, are awarded grants to make Texas an attractive location to invest in. Such businesses are required to contribute significantly and generate new employment opportunities (75% of jobs in Urban and 25% in rural areas) in Texas.
Learn more about TEF, here
4. Grants.gov
It’s a comprehensive resource of available government business grants. Various federal agencies administer small business grants to support a wide range of businesses such as restaurants, elderly care services, and health clinics.
Learn more about federal grants, here
5. Small Business Innovation Research (SBIR) and Small Business Technology Transfer Program (STTR)
This federal grant is powered by the Small Business Administration (SBA) and helps business owners foray into research and development of new technology. The government’s incentive is to help businesses commercialize by turning development into profits.
6. Additional grants
Here are a few more grants available for businesses in Texas:
- Young farmer grants
- Texas Workforce Commission’s Skills for Small Business Grant Program
- Texas Job Creators Grant
Government agencies are the biggest grant distributors. Though the application process is lengthy and the competition is fierce, there is a huge upside to receiving federal grants i.e. business growth opportunities.
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Corporate business grants
Here are a few grants offered by multinational corporations for the growth of small businesses.
1. Amazon small business grants
Amazon hosts an annual grant program offering 20 participants a monetary prize between $10,000-$25,000. Apart from the monetary prize, participants also get access to an Amazon devices bundle, 1 year of Business Prime, and a free consultation call with the team.
Click here to learn more about Amazon grants.
2. FedEx small business grant
If you’re a for-profit US-based business operating for more than 6 months and have no more than 99 employees, this business capital funding is for you.
FedEx distributes over $230,000 to 10 small business owners to support and enhance business operations, every year.
Click here to learn more about FedEx grants.
3. Visa Everywhere competition
Visa annually grants small business funding to fintech startups operating across the globe. It offers 1 prize worth $100,000 to the most competent fintech solution.
Startup business grants
Here are a few grants specifically for startups that require capital for business launch and growth.
1. Hello Alice
The Hello Alice community partners with other enterprises such as Amazon, eBay, and Shopify to offer small business grants in the community.
Learn more about Hello Alice grants, here
2. Comcast RISE
Startup business owners can avail of two types of grants by Comcast RISE – Marketing services along with technology makeovers and a $10,000 grant. The startup should be located within the Comcast or effective service area.
These grants are offered quarterly to startups that have been operational for more than a year.
Another important criterion – a 51% business stake needs to be owned by a woman or person of color.
Specialty business grants
Here are a few grants specifically for minorities, women-led businesses, and veterans.
1. Veterans
Veterans Business Participation Center
The Small Business Administration (SBA) hosts the VBOC program. They help veterans who are interested in starting or growing a small business with various business development services and funding.
The VBOC supports veterans, women veterans, military spouses, service members, Service-disabled veterans, and Reserve and National Guard members.
2. Women
Women’s Business Center (WBC)
The SBA sponsors 100 WBCs throughout the United States that act as a network of entrepreneurship centers. They help women in accessing small business funding and business expertise. Some WBCs offer direct financial aid while others find you small business grants that your business may qualify for.
Amber grants
WomensNet Foundation offers the Amber grant on a monthly and annual basis to women-owned businesses. Every month, 3 participants are rewarded $10,000 and an annual grant worth $25,000 is offered to 3 more participants.
Businesses located both in the US and Canada are eligible.
3. Minorities
Minority Business Development Agency Centers (MBDA)
Minority-owned businesses seeking to expand their business on a national and international level can consult business experts at MBDA centers. They offer a wide range of services helping you secure capital, compete for a contract, and become an export-compliant.
MBDA centers offer grants for minority business owners. They are mostly located in areas with the highest concentration of minority population.
That’s all the grants we could find for the businesses in Texas in 2024.
How to find the best-suited grant for your business?
Now that we understand the various grants for helping our small businesses grow, let’s get into the nitty-gritty of the grant application process.
1. Understand your business eligibility
Securing grants is highly competitive.
You can save your time and effort by studying the eligibility criteria for the available grants.
Studying your business in-depth can help reveal opportunities that you haven’t leveraged yet. For example, if you or your spouse belong to the BIPOC (Black, Indigenous, and/or people of color) community, you become eligible for grants that offer aid, especially to these communities.
2. Check if your business is a right fit for grants
Here are a few criteria that business owners must be aware of and have documents to support their claims:
- The number of years the business has been operational
- Revenue growth attained in each financial year
- Tax returns for each financial year
- Assessment test results such as FICO (Credit scores)
- Previous grants applied and accepted/rejected
- Number of employees
- Percentage of the business stake owned by BIPOC or minority community member
- Type of organization – for-profit or non-profit
Answers to the above points can help you realize if your business is the right fit for a particular grant or not.
Explore other alternatives to grants
Now, grants aren’t the only way to support your business financially. Here are financing alternatives you can consider in place of grants:
1. Small business commercial loans
You can choose the right financing need by comparing options such as – bank loans, SBA loans, business lines of credit, equipment loans, and term loans. Loans are hassle-free and easy to obtain but require business owners to keep collateral in lieu of the loan.
2. Small business micro-loans
If commercial loans do not pique your interest, you can explore micro-loans. Small loans that are less than $50,000, have short terms, and have low interest rates qualify as microloans.
3. Small business credit cards
Do you want to undertake business purchases while earning rewards? Credit cards would be the right option for you then. There are a host of credit cards that you can explore.
4. Crowdfunding for small businesses
Online platforms such as Kickstarter help leverage the power of the internet and fund your small business. People support your business if they find it to be creative and value-adding.
How would a grant impact your business?
Are you still contemplating whether the grant is the best possible option for you? Let’s understand the advantages and disadvantages of grants to help you make a quick decision.
Advantages
Easy access to capital
If you’re a small business owner looking to expand your business or hire specialists in your existing team, grants can help you achieve those objectives more quickly. Grants act as complimentary money without the pressure to repay.
Waterfall effect
If your small business has qualified for a grant and has generated a positive return on the investment, it becomes easy to secure other grants. This happens purely because investors and facilitators can see a positive outcome in the process. Do check eligibility requirements if you have already been awarded a grant and plan to apply for one more.
Helps gain credibility
If you have been awarded a grant, it helps you gain visibility for your work. This in return can help you promote your business idea and get your work noticed.
Explore untapped opportunities
Certain grants ensure that the small business spends on particular activities such as hiring consultants and examining their environmental impact. This can help businesses explore untapped opportunities which in return could prove to be beneficial for the firm.
Limitations
Competitive
Securing a grant is extremely competitive in Texas. The best way is to be on the constant lookout for available grants before they close their applications.
Time-consuming
The grant application is a tedious and cumbersome process. A lot of process needs to be taken care of before the aid is availed. Research, paperwork, finding the right fit for your business, and a convincing proposal need to be drafted to make the cut.
Uncertain renewal
One of the major drawbacks of grants is that they might not be renewed. This can be scary since business owners need to undertake decisions based on the grants available, which may not be in the best interest of the firm.
Entrepreneurs would have to reapply to avail of grants once the funds are exhausted. The best possible solution is to finance your business in such a fashion that business operations are sustainable and do not get hindered even if your grants get exhausted.
Conditions attached
Although grants help scale your business operations, there are restrictions and conditions attached. Businesses can invest the grant only for specific activities. These activities need to be very specific and are audited by the granting agency. Therefore, business owners should be clear about the activity the grants will be used for.
Conclusion
Texas is a wonderful state brimming with opportunities for business enthusiasts. So, don’t let lack of capital be the reason you drop your entrepreneurial pursuit.
Explore different grants available for small businesses in Texas, study their eligibility criteria, and craft your application to secure funding or growth capital.
While you are at it, prepare a business plan with Upmetrics. This business planning tool helps you write a convincing and realistic business plan to strengthen your grant application.
Stop contemplating and apply for a grant for your wonderful business idea.
