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Winnsboro EDC Incentives

Local & State Incentives along with Grants & Creative Financing

1. Winnsboro Economic Development (WEDC)

2. Texas Business Incentives & Programs Handbook

3. Grant Options

4. Greater Texas Capital Corp. (Small Business)

5. U.S. Small Business Association 

6. The Texas Product Development and Small Business Incubator Fund (PDSBI) (Small Business)

7. The Capital Access Program

8. A Certified Capital Company (CAPCO)


1. WEDC Fund Eligibility & General Info:

Winnsboro EDC is a Type B economic development corporation under the State of Texas Development Corporation Act of 1979. Chapters 501, 504 and 505 of the Local Government Code outline the characteristics of … Type B EDCs, authorize cities to adopt a sales tax to fund the corporations and define projects EDCs are allowed to undertake.

Eligible Expenditures

Type B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure and improvements for:

  • professional and amateur sports and athletic facilities
  • tourism and entertainment facilities
  • convention facilities
  • public parks
  • related store, restaurant, concession
  • parking and transportation facilities
  • related street, water and sewer facilities
  • affordable housing.
  • events
  • auditoriums
  • amphitheaters 
  • open space improvements
  • museums

Or to promote and develop new and expanded business enterprises that create or retain primary jobs**, a Type B EDC may fund:

  • public safety facilities
  • recycling facilities
  • streets, roads, drainage and related improvements
  • demolition of existing structures
  • general municipally owned improvements 
  • maintenance and operating costs associated with projects.

Type B allowable costs can also cover:

  • financing new and expanded business enterprises
  • construction costs
  • land, buildings, equipment, facilities, and improvements suitable for the development, retention, or expansion of business enterprises
  • development or expansion of airport or railport facilities, including hangars, maintenance and repair facilities, cargo facilities, and related infrastructure located on or adjacent to an airport or railport facility
  • planning and professional services related to the project
  • financial transactions and reserve funds
  • administrative and other necessary expenditures
  • research and development
  • voter approved use for water conservation and cleanup of contaminated property

Written Performance Agreements

EDCs cannot simply give sales tax proceeds to businesses. An EDC must enter into a written performance agreement with any business enterprise that it funds directly or makes expenditures that benefit an eligible project. At a minimum, the performance agreement must contain:

  • a schedule of additional payroll or jobs to be created or retained;
  • the capital investment to be made by the business enterprise; and
  • the terms for repayment of the EDC’s investment if the business fails to meet the performance requirements specified in the agreement.

**Definition of "primary job". Primary jobs' main requirement is that the businesses bring new money into the community. In 2003, the Legislature voted to require that certain projects create or retain primary jobs. A primary job is one at a company that exports a majority of its products or services to markets outside the local region, infusing new dollars into the local economy. Primary jobs are further limited to specific industry sectors such as agriculture, mining, manufacturing and scientific research and development.

To inquire of an application or if you need more information, contact our office at:(903) 342-3654 or email the City Administrator, Craig Lindholm, at clindholm@winnsborotexas.com

Winnsboro Economic Development Corporation
501 South Main Street
Winnsboro, TX 75494


2. Texas Business Incentives & Programs Overview Handbook:

Explore additional opportunities through the Texas' incentive programs. The Texas Wide Open for Business handbook covers each one with a brief overview to help you quickly identify applicable programs for your business. It also includes the links to each program's online site so that you can further investigate the criteria and the process of applying for them. 

Incentives discussed within the handbook include:

  • Texas Enterprise Fund
  • Skills Development Fund
  • Self-Sufficiency Fund
  • Texas Enterprise Zone Program
  • Governor’s University Research Initiative
  • Texas Capital Fund Infrastructure / Real Estate Programs
  • State Sales and Use Tax Exemptions
  • Franchise Tax Deduction for Business Relocation
  • Chapter 380 /381 Economic Development Agreements
  • Texas Leverage Fund  Event Trust Funds
  • Bonds: Sales Tax, Exempt-Facility and Tax-Exempt Industrial Revenue
  • Defense Economic Adjustment Assistance Grant Program (DEAAG)
  • Texas Military Value Revolving Loan Fund
  • Texas Product Development & Small Business Incubator Fund (PDSBI)
  • Research & Development Tax Credit
  • Texas Economic Development Act
  • Ad Valorem/Property Tax Exemption
  • Renewable Energy Incentives
  • Permit Assistance
  • Moving Image Industry Incentive Program
  • Cancer Prevention and Research General Obligation Bonds
  • Economic Development and Diversification In-State Tuition for Employees

To determine if any of these programs can assist your business, click on the >> Texas Business & Incentives Overview Handbook.


3. Grants

Besides assistance through the Winnsboro EDC, businesses can explore other options for funding. "From public infrastructure projects in non-entitlement communities to workforce development and laboratory facility construction, several types of grants are available to Texas communities and businesses.
 

For a brief summary on each of the above, visit the Texas Wide Open for Business page by clicking here.


4. Greater Texas Capital Corporation

"Greater Texas Capital Corporation one of nations’ fastest-growing Certified Development Corporations, helps small businesses secure favorable fixed rate financing for real estate and equipment. As a Certified Development Corporation (CDC), we are a nonprofit company specifically established to contribute to economic development. We work with the Small Business Administration (SBA) and other lending partners to provide loans to small businesses requiring real estate and equipment financing with long-term, fixed-rates throughout Texas."

GTCC provides small businesses with a very, hands-on approach in completing the application process, walking the business owner through the process. Preparation is the key ingredient for a successful and smooth completion. They offer 504, Conventional, and 7a, loans. 

In advance of applying, businesses will be need to have the following documentation:

  • Business Plan
  • Financial Statements
  • Cash Flow Projections
  • Credit Rating Report
  • Personal Financial Statements
  • Collateral
  • Legal Documents (ie., licenses, partnership agreements, commercial leases, and etc)
  • Buying an existing business. Include balance sheets, Federal returns, projections, appraisal, and etc.

To learn more about the types of loans GTCC offers and how your business can apply, visit their page by clicking here.


5. U.S. Small Business Association

"SBA offers a variety of loan programs for very specific purposes. Take some time to study the programs described in this section, to see if you qualify to participate.The 7(a) Loan Program, SBA’s most common loan program, includes financial help for businesses with special requirements." As follows:

  • General Small Business Loans: 7(a)

    The 7(a) Loan Program, SBA’s most common loan program, includes financial help for businesses with special requirements.

  • Microloan Program

    SBA’s Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers.

  • Real Estate & Equipment Loans: CDC/504

    This loan program provides financing for major fixed assets such as equipment or real estate.

  • Disaster Loans

    SBA provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters. SBA disaster loans can be used to repair or replace the following...

  • Loan Programs

    From starting up or expanding your business to recovering from disasters, SBA loan programs are available to help your business succeed. You can explore various types of loans that may be available..."

Discover all the ways that U.S. SBA can assist your small business by visiting their website here.


6. The Texas Product Development and Small Business Incubator Fund (PDSBI) (Small Business)

"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."

Eligibility:

  • Applicants must have at least 3 years of operating history
  • Collateral with unencumbered assets  
  • Preference given to  state defined industry clusters including, but not limited to: nanotechnology, biotechnology, biomedicine, renewable energy, agriculture and aerospace.

With an interest in creating and retaining high-quality jobs. For more information, contact the Economic Development Finance (EDF) department within the Governor's Economic Development & Tourism Office. The EDF administers the Texas Product/Business Fund at the direction of the Governor's appointed nine member board.


7. The Capital Access Program

"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."

Process & Eligibility:

  • Apply for loan with a participating lender: LiftFund or PeopleFund
  • Proceeds may include working capital or the purchase, construction, or lease of capital assets, including buildings and equipment
  • 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 details about the CAP program click here for the .PDF file. The FAQ sheet can be found here.


8. A Certified Capital Company (CAPCO)  

"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."

Eligiblity:

  • Must be headquartered in Texas (or relocate to Texas within 90 days of the CAPCO's first investment)
  • Have no more than 100 employees at the time of investment
  • 80 percent of payroll/workforce located within Texas
  • Primary business activity be manufacturing, processing or product assembly, research and development or tangible services. 
  • 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."


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Winnsboro is a Go Texan Certified Retirement Community!

The GO TEXAN stamp of approval ensures each certified community has demonstrated that it can meet the living, employment/volunteer, health, entertainment, education and safety needs of its citizens and visitors - all the things that make Texas a great place to retire.