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STATE FINANCING OPTIONS

1. Greater Texas Capital Corp. (Small Business)

2. U.S. Small Business Administration (Small Business)

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

4. The Capital Access Program

5. A Certified Capital Company (CAPCO)

 

1. 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.

 

2. 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..."

  • SBA Restaurant Revitalization Fund

            The Restaurant Revitalization Fund appears to be ready for activity with applicants being allowed on April 30th and SBA

                approvals starting on May 3rd.

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

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3. 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 is 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.

4. 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.

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5. 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."

Eligibility:

  • 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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